In June of this year Michigan modified the rules to allow buyers of site condos to qualify for FHA loans. This change allows new home buyers to move into site condos with government backed loans that offer lower downpayments and interest rates. This change significantly helps first time home buyers, purchasers with minor credit issues, or Michigan home buyers who desire a low downpayment.
FHA Loans Advantages
- Easier to qualify
- Offered to buyers with less than perfect credit
- Low downpayment (3.5%)
- Competitive interest rates
Home buyers can obtain an FHA backed loan from traditional mortgage companies and simply need to inquire about this type of loan. FHA loans are available in both fixed-rate and adjustable-rate mortgages. Additional information is available on the U.S. Department of Housing and Urban Development’s website.