Loan Program
FHA Loans
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and more forgiving credit guidelines than conventional financing. It is a common choice for first-time buyers in Lincoln Park, Taylor, Ecorse and other Downriver markets where older, affordable housing stock is plentiful.
What it is
- A government-insured mortgage designed to expand access to homeownership.
- Available as fixed-rate and adjustable-rate loans on primary residences.
- Includes an upfront and an annual mortgage insurance premium.
Who it's for
- First-time buyers who are still building credit.
- Buyers with a smaller down payment saved.
- Households with higher debt-to-income ratios that still show stable income.
Typical requirements
- Down payment as low as 3.5% with qualifying credit.
- Property must be your primary residence and meet FHA appraisal standards.
- Documented income, assets and a two-year housing history.
- Mortgage insurance premiums apply for the life of most FHA loans.
Guidelines vary by lender and change over time. Meeting these items does not guarantee approval, and all loans are subject to credit and property approval.
Advantages
- Lower credit score thresholds than most conventional programs.
- Gift funds from family are widely accepted for the down payment.
- Assumable by a qualified buyer in many cases.
Trade-offs
- Mortgage insurance usually stays for the life of the loan.
- Appraisal standards can flag repairs on older homes.
- Primary residences only.
FAQ
FHA Loans: common questions
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