|A FHA loan is a loan by a bank that is insured by FHA and to FHA guidelines. It is a great loan for first time home buyers, buyers with bruised credit, and buyers with higher debt ratios.FHA underwriting guidelines allow home buyers to have only one year of clean credit. Many banks look past one year on how you pay your payments. FHA is looking at the last year carefully. FHA does require Bankruptcies and foreclosures to be 2 and 3 years ago. But they will allow late payment over a year ago so long as the payment history is on time for the last year and you meet their minimum credit score.The pros of having a FHA loan is that sometimes you cannot qualify for a conventional loan because of your short credit history, or your low down payment, or lower scores. This is a great way to buy a home if you cannot be approved for a conventional mortgage. The cons or disadvantage of a FHA mortgage in 2014 is that you cannot get rid of the PMI unless you refinance out of the FHA mortgage. If you want more Michigan home buyer tips go to any of my websites or click on the link to the right about home buying. Lots of great information for any home buyer.If you have been turned down for a conventional loan because of too much debt, then you might try to get a FHA loan. FHA allows higher debt ratios than conventional loans so you may be able to qualify.
If you have questions about the loan process I have several good loan officers that I know at different banks that will be glad to answer your questions. Send me an email @ email@example.com and I will send you their contact info. If you are a home buyer in southeastern Michigan here are two more articles on Michigan property taxes and Wayne County relocation
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