FHA Loans Help More People Get Into Homes
FHA loans are insured and regulated by the Federal Housing Administration. With this insurance, lenders can offer attractive interest rates coupled with low down payments and less stringent qualification requirements.
Credit scores for FHA loans are more lenient than credit score requirements for conventional loans. Mackinac offers qualified borrowers FHA loans with FICO credit scores as low as 580; certain restrictions apply including down payment and/or post-closing cash reserves.
FHA purchase loans require a minimum down payment of 3.5% of the purchase price, which can come from your savings or a gift from a relative. For a $100,000 purchase, you need a $3,500 down payment. Also, sellers in a purchase transaction can pay up to 6% of the purchase price towards a buyer’s closing costs and prepaid property taxes and insurance.
Mackinac offers a down payment assistance program which can help you get into the home you want with very little money out of your pocket.