Loans for First Time Buyers in Michigan
Passing affordability and credit checks when applying for a mortgage loan are two small hurdles on the way to home-ownership. Often first time buyers find that the most challenging part of getting on the property ladder is saving a sufficient down payment. This can be hampered by rising rent and property costs and a fluctuating economy meaning the rulebook for first time buyers changes often.
If this sounds all too familiar you’ll be relieved to learn you don’t need a 20% down payment – even with a conventional loan. Although the 20% down payment myth is still widely circulated among buyers, the truth is there are loan products that provide down payment assistance or 100% financing. Here are three loans perfect for Michigan first time home buyers.
1. MI 10k DPA Loan
Available to purchasers within certain Michigan zip codes, this program is designed to support home-ownership in areas where opportunity for ownership is high but the take-up rate is low. Applicants can purchase their dream home with just a 1% down payment and receive $10,000 to use towards the down payment which is only due for repayment when the house is sold, refinanced or the mortgage is paid off.
2. USDA Loans – Zero Down Payment
Also known as Rural Development Loan, the USDA program is designed to offer 100% housing loans in certain locations to promote population distribution towards more rural areas.
This type of loan is backed by federal government, giving lenders more confidence to loan to low-moderate income families. Assuming you meet the program’s requirements – chiefly falling into an income limit, purchasing in certain locations and a minimum credit score of 640 – this loan opens to door to homeownership with zero down payment required.
3. VA Loans – Zero Down payment
For Veterans, the VA loan program could save you thousands of dollars compared to other mortgage options. VA loans can help you get into the real estate market without a down payment, lenient credit requirements and better refinancing options in the long run.
With a generous loan limit of $424,100 and no minimum credit score; as long as you can provide a certificate of eligibility, proving you have served at leas 90 days in the US Military, this is a promising option for veterans on their journey to homeownership.
Loans for Michigan First Time Buyers
Julie Krumholz is has been helping Michigan first time homebuyers for over 30 years and has several loan programs available for various incomes and financial situations. She brings a wealth of experience to her clients and nothing makes her happier than seeing the face of a happy and excited customer at the closing table.
If you are looking for a mortgage lender in Michigan, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.