Grand Rapids Michigan Home Loan
How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:
The fixed-rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae, and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.
Adjustable Rate Loans
With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period of time.
FHA and VA Loans
The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have lower down payments, and have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!
In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!
Rural Development Mortgage (RD)
The US Department of Agriculture (USDA), offers loans for low-to-moderate-income home buyers. RD loans have zero down payments, and are not required to have a monthly Mortgage Insurance (PMI) with any size down payment. RD have relatively easy requirements and all are fixed-rate mortgages. RD mortgages do have 2 main restrictions 1. Geographic: The home must be located in a Rural Area (Check Address Here) to see if it qualifies. 2. Income restrictions Apply as well (Check Here for income restrictions), talk to a lender to see if you can qualify for this.
Local Homebuying Program
There are often many state and local programs available. These programs offer down-payment assistance and programs for local home ownership. Learn more about these local programs, recommended lenders, and other finance options by contacting us today!
2 local Programs:
Neighborhood Stabilization Project (NSP) - The city of Grand Rapids and Wyoming are participating in this program and are receiving federal grant money to completely rehab homes, there are pretty strict guidelines on who can qualify for these homes and this Mortgage. NSP mortgages, come with a funded 20% down silent second mortgage that falls off the home after a certain number of years. Link to Grand Rapids NSP Site
Mortgage Credit Certificate (MCC) - This is a tax credit program that if you qualify you can write off 20% of the mortgage interest you spent that year as a straight Tax Credit on your income taxes, this program last 10 years from purchase, and have a 1% of the home purchase price funding fee to enroll. Link to MSHDA MCC Website
Check With a Preferred Local Lender to see what mortgage would be best for YOU!