A Trusted Lender Providing FHA Mortgage Loans in Brighton, MI
Concord Mortgage, Inc. is an approved FHA lender offering government-backed loans with lower down payment requirements and competitive interest rates.
FHA home loans are a popular choice for first-time homebuyers. This is due to less stringent requirements and lending standards that make it easier to get into the house you’ve had your eyes on. Our team can help get you the loan you need, even if you don’t have great credit or the ability to make a significant down payment.
FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). They require that the borrowers pay for mortgage insurance, which protects the lender in the case of default. This allows lenders to offer loans with down payments as little as 3.5 percent!
The Pros and Cons of Choosing an FHA Mortgage Loan
- Lower Requirements Than Traditional Mortgages: Standard mortgages typically require as much as a 20% down payment, and are only offered to individuals with a credit score that exceeds 700. On the other hand, FHA mortgage loans are available for individuals with a credit score as low as 600, and typically only require a 3.5% down payment.
- Payments Typically Drop After 5 Years: Most mortgage loan terms are spread over 15 to 30 years, but your mortgage insurance payment will expire much sooner! As soon as you have paid of 20% of your loan, or after just 5 years, you will no longer be required to make payments for FHA insurance.
- No Minimum Income Requirements: While every lender has their own underwriting guidelines, there are no income requirements for acquiring an FHA mortgage loan. This means that both low-income and wealthy home buyers can take advantage of FHA financing.
- Competitive Rates: FHA lending rates follow the typical standard for national interest rates, and are competitive with traditional mortgage interest rates, but with a lower barrier for entry.