FHA Loans Create a Path to Home Ownership
An FHA loan is a government-backed home financing option that was created to help more people achieve the dream of owning a home. This non-conventional loan option has minimal approval and down payment requirements. The AIM Financial team is an FHA-approved lender with mortgage professionals who offer one-on-one attention and fast approval. We can accept clients with credit scores as low as 580. If you are looking to purchase in Middleville, Grand Rapids, Wyoming, Sparta, Caledonia, Kentwood or nearby Michigan, we offer complimentary consultations. Contact us to see if an FHA loan or other financing solution is best-suited for your needs.
Approval is Easy with an FHA Loan
Exploring the many types of home financing can be a daunting task. If you have less-than-perfect financial history or low credit scores, you may think that owning a home is out of reach. Fortunately, FHA loans are a government-sponsored mortgage option with flexible approval requirements. These loans are insured through the Federal Housing Administration, a government agency that oversees housing and home financing in the U.S. By insuring these non-conventional loans, the government provides a safety net for private lenders in case of borrower default. Because of this, private mortgage companies can approve a wider group of clients for financing. FHA loans are one of the most popular type of home loans in the US.
Non-Conventional vs Conventional Loans
Because it is insured through a government agency, an FHA loan is known as a non-conventional mortgage. Other types of government-backed agencies include VA loans (via the U.S. Department of Veterans Affairs) and USDA loans (via the U.S. Department of Agriculture). Non-conventional loans are an alternative to conventional loans. Conventional loans are privately funded, like non-conventional loans, but are also privately insured and no government backing.
FHA Loan Approval Basics
One of the greatest characteristics of FHA loans are their more relaxed approval requirements than their conventional counterparts. Basic approval requirements include:
- A 580 or higher credit rating
- No outstanding federal debt
- Payment of at least 3.5% down payment
- Proof of ability to pay monthly mortgage payments and other homeowners costs like homeowner’s insurance and property tax
- Proof of steady employment history
It is important to note that you must live in the home you are financing as your primary residence for the life of your FHA loan. FHA loans are available for single-family homes up to $275,665, and we can provide limits for other housing types. Though specifics apply, FHA loans are available for single-family homes, 2-4-unit buildings in which a client lives in one unit, and certain approved condos and manufactured homes.
Explore Your Options
At AIM Financial, we provide fast approval and a quick turnaround for our FHA loan clients. We hope to build a long-term relationship with you and your family and assist you no matter what type of mortgage you seek. Contact us to schedule a meeting about an FHA loan or other financing in Middleville, Grand Rapids, Wyoming, Sparta, Caledonia, Kentwood, or surrounding Michigan.