FHA Home Loans in West Michigan
You May Be Closer to Homeownership Than You Think
Buying a home does not always require 20% down.
FHA financing may allow qualified buyers to purchase a primary residence with a down payment as low as 3.5%, depending on lender approval and eligibility.
Avila Home Group is not a mortgage lender. Financing is subject to lender approval and applicable program requirements.
What Is an FHA Loan?
An FHA loan is a mortgage made by an approved lender and insured by the Federal Housing Administration.
For qualified buyers, FHA financing can make homeownership possible with a smaller down payment than many people assume is required.
But the goal isn't simply to find the loan with the smallest down payment.
The goal is to understand your options and build a buying plan that makes sense for your numbers.
Lower Down Payment
Qualified FHA borrowers may be eligible for financing of approximately 96.5% of the home's value.
Primary Residence
FHA purchase financing is generally designed for a home that will serve as your principal residence.
More Than Single-Family
Eligible properties may include certain one-to-four-unit residential properties, subject to FHA and lender requirements.
You Don't Automatically Need 20% Down
One of the most common misconceptions about buying a home is that you need to save 20% of the purchase price before you can even begin.
FHA financing may allow a qualified borrower to purchase with a down payment as low as approximately 3.5%.
But down payment is only one part of the equation.
3.5% down payment
Example for educational purposes only. This does not include closing costs, prepaid expenses, reserves, inspections or other transaction expenses.
Your Down Payment Isn't Your Entire Buying Budget
This is where good planning matters.
Your home-buying plan should account for more than the down payment alone.
Down payment
Closing costs
Prepaid taxes and insurance
Home inspection
Appraisal-related expenses
Moving expenses
Emergency reserves
Other transaction expenses
Don't just ask, “How much do I need down?”
Let's look at what the entire purchase could require.
First-Time
Buyers Only
FHA Isn't Only for First-Time Buyers
FHA financing is commonly associated with first-time homebuyers, but it is not exclusively a first-time-buyer mortgage program.
Someone who has owned a home before may still be able to use FHA financing if they meet applicable borrower, occupancy, property and lender requirements.
The important question isn't whether FHA fits a label. It's whether FHA fits your situation.
FHA vs. Conventional
Neither loan type is automatically “better.”
The better financing strategy depends on your financial profile, available cash, goals and the property you're considering.
- Potential low-down-payment option
- FHA mortgage insurance applies
- Property must satisfy applicable FHA requirements
- Principal-residence requirements apply
- Eligibility determined by an FHA-approved lender
- Multiple down-payment structures may be available
- Mortgage-insurance rules differ
- Different underwriting standards may apply
- Property requirements may differ
- Eligibility determined by the mortgage lender
Don't choose a loan because the name sounds better.
Compare the actual numbers and determine which financing structure supports your home-buying plan.
What About FHA Mortgage Insurance?
FHA financing generally includes mortgage insurance.
HUD requires an upfront mortgage-insurance premium for most FHA single-family mortgage programs, and FHA borrowers can also be responsible for an annual mortgage-insurance premium.
Depending on the loan, the upfront premium may be financed into the mortgage.
A smaller down payment doesn't automatically mean the lowest overall housing cost.
Look at the complete monthly payment and long-term numbers.What Kind of Property Can You Buy?
FHA's basic mortgage-insurance program can apply to eligible one-to-four-unit residential properties.
Single-Family
Traditional detached and qualifying attached residential homes.
Duplex
Certain two-unit properties may qualify when applicable FHA requirements are satisfied.
Three Units
Certain three-unit residential properties may qualify, subject to program and lender requirements.
Four Units
Certain four-unit residential properties may also be eligible under FHA's basic program.
Property eligibility, occupancy requirements and loan approval should be confirmed with an FHA-approved mortgage lender.
Getting Approved Is Only Half the Equation
Your financing strategy and the property you purchase need to work together.
FHA-financed purchases include an FHA appraisal, and the property must satisfy applicable program requirements before the loan can close.
Understand your financing before touring seriously.
Evaluate properties with the financing strategy in mind.
Review the property and offer structure before submitting.
Work closely with your lender throughout the transaction.
Start With the Plan — Not the House
Before we start opening doors, let's understand the numbers, timeline and strategy.
Understand Your Numbers
Connect with a qualified mortgage professional and determine which financing options may be available.
Set Your Comfortable Payment
Mortgage approval and a comfortable household payment are not necessarily the same number.
Build the Home Search
Once the financial picture makes sense, we identify properties that fit your goals, budget and financing.
Evaluate Before You Offer
We review the property, comparable sales, market conditions and offer strategy before moving forward.
Navigate the Transaction
From accepted offer through inspections, appraisal, financing and closing, you'll know what comes next.
You Don't Need to Know Which Loan You Want Yet.
You may simply need answers to the right questions first.
How much cash would I realistically need?
What might my monthly payment look like?
Should I compare FHA and conventional?
Could down-payment assistance be worth exploring?
What price range should I actually search?
Will FHA work with the type of home I want?
Common FHA Questions
Do I need 20% down to buy a home?
No. Qualified FHA borrowers may be eligible for approximately 96.5% financing, which can correspond to a down payment as low as about 3.5%. Eligibility and exact loan terms are determined by the lender.
Are FHA loans only for first-time buyers?
No. FHA financing is not exclusively a first-time homebuyer program. Borrower, occupancy, property and lender requirements still apply.
Can I buy a duplex with FHA financing?
Potentially. FHA's basic program can cover eligible one-to-four-unit residential properties. The property, occupancy and borrower must meet applicable requirements.
Does an FHA loan include mortgage insurance?
Yes. FHA financing generally includes an upfront mortgage-insurance premium and an annual mortgage-insurance premium. Your lender can explain how these costs apply to the loan you're considering.
Who determines whether I qualify for FHA financing?
FHA-approved mortgage lenders determine borrower eligibility and make underwriting and loan-approval decisions. Avila Home Group does not make mortgage lending decisions.
Should I choose FHA or conventional financing?
It depends on your financial profile, available funds, property, monthly-payment goals and available loan programs. Comparing the complete numbers with a qualified mortgage professional is generally more useful than choosing based on the loan name alone.
Start With the Numbers.
Then Search for the Home.
You don't have to be ready to buy tomorrow. You just need enough information to understand what your next step should be.
Important Financing Disclosure: Avila Home Group and Keller Williams East are not mortgage lenders and do not make credit or financing decisions. Mortgage programs, rates, loan limits, property requirements, down-payment requirements and borrower eligibility are subject to lender underwriting and program requirements and may change. Information on this page is provided for general educational purposes only and does not constitute a loan commitment, mortgage approval, legal advice, tax advice or financial advice.