With all the craziness going on in the mortgage and housing industry, it’s good to know that Michigan FHA mortgages remain the best option for first time home buyers in Farmington Hills, Michigan.
One of the things that got the mortgage industry in trouble was how banks verified the bank statements for the home buyers…or I should say how the banks DIDN’T verify peoples bank statements and really see if they had money in the bank.
Farmington Hills, MI
With FHA mortgages, it has always been policy of making sure home buyers have their own money in the bank. The minimum cash for closing that Farmington Hills, MI (or anywhere in the country) first time home buyers need is 3.5% of the purchase price. And these funds are verified through the most recent 2 bank statements. If the FHA Underwriter finds any large deposits, you will have to explain the reason and document the source of the funds.
Another thing FHA Underwriters will look for on the bank statements is the indication of NSFs, or Non-Sufficient Funds. This means you wrote a check and it bounced. FHA views this as an inability to budget money and the fear is you will not be able to make your mortgage payments on time each month. One of the great things about FHA loans for Michigan homebuyers is that 100% of the money for closing can come from a family member or close friend. These are called gift funds and it is considered your own money on FHA loans.
My clients have the confidence that I am formerly trained by HUD as an FHA Underwriter and I have the know how to properly package FHA loans for underwriting. Because FHA loans are government loans, knowing how to put them together is quite difficult, so working with an FHA expert is crucial if you want to increase your chances of getting approved. Feel free to submit any questions about buying a home in Michigan.
