How To Get The Best FHA Mortgage Rate in Michigan

Troy is a great place to live if you love the suburbs. It’s one of the safest cities in the U.S. and provides a not-so-fast-paced lifestyle compared to the vast and crowded cities.

An FHA loan is an excellent choice when looking for financing options since it has more lenient requirements than conventional loans. This leniency makes qualifying for an FHA loan in Troy, Michigan easier, especially for those who have low credit scores and are looking for low downpayment loans.

To save more on your mortgage, we share tips on how to get the best mortgage rates in Michigan.

Ways to get lower interest rates on your Michigan FHA loan

You’d want to get the lowest rates possible as a first-time borrower. Simply accepting the rates quoted isn’t a good idea since getting lower rates is within reach by following the proper steps.  

1. Correct errors on your credit reports

When applying for a loan, it’s essential to ensure that your credit scores reflect your true financial situation. We know that the FHA allows scores as low as 500 but did you know that having higher scores can give you better interest rates?

Pull your credit reports and check for errors like a bad debt collection you aren’t familiar with. Once errors are corrected, your scores can go higher, earning you lower interest rates.

2. Pay a larger downpayment

While FHA loans allow 3.5% down payments, putting down more can give you leverage on lower interest rates.

A bigger down payment lowers your LTV ratio, which shows lenders that you are a trustworthy borrower.

To know how much you should put down, an FHA down payment calculator can show you various scenarios that would fit your budget.

3. Pay off credit card debts

Improving your DTI ratio can impact your credit scores and give you a shot at lower interest rates. Paying off credit card debts can help lower your DTI and boost your credit scores.

4. Shop around for first-time homebuyer programs

First-time homebuyer programs can give you the extra cash you need to pay your down payment and closing costs. You don’t have to pay anything, plus you can get favorable rates.

If you want to know how much you’ll pay monthly on your FHA loan, an FHA loan calculator for Michigan can show you the numbers so you can prepare accordingly.

Are you ready to apply for an FHA loan?

Reliance Financial Group of Michigan can give you the best rates in town. Get in touch if you’ve found your dream home and are ready to apply for an FHA loan.

Our loan officers would be glad to help you get started.

Call or message us for an appointment today.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.