Mortgage Programs

Conventional, FHA, VA, USDA, 203k and the list goes on and on.  When it comes to mortgage options there are countless options available. Which mortgage option is best for you?  The answer to that question depends on a number of factors that are unique to your specific financial situation.

As with most things in life, there are pluses and minuses to nearly every mortgage option. We will work closely with you to determine which mortgage option is best suited to your home ownership goals.

Mortgages come in two main categories:

Fixed Rate Mortgage
These are loans that have a fixed interest rate for the entire term of the loan. The term of these loans is typically anywhere from 10 years to 30 years depending on the option you select.  In most cases, the longer the term of the loan, the higher the interest rate.

Adjustable Rate Mortgage (ARM)
These are loans that have a variable interest rate. This means your rate can and likely will change at some point.  Adjustable rate loans have many different variables that can impact your overall cost to borrow.  Adjustable rate loans typically have an interest rate that is fixed for a period of time (generally 3, 5, 7, 10 or 15 years). After the initial fixed rate period, the loan can typically have a change in interest rate.  There are a number of factors that can determine what that rate would be.  The benefit to an adjustable rate loan is they typically have an interest rate that is lower than a fixed rate mortgage.

Mortgage Programs have different cost and qualifying requirements.  Most of these programs allow for both fixed and adjustable rate mortgage options. Here are some common mortgage programs:

Conventional
A conventional mortgage is a traditional home loan that is not guaranteed by the government.  Conventional loans typically have the most favorable mortgage terms for a client. Conventional loans can be more difficult to qualify for vs. other options as the guidelines are generally less flexible than other programs (such as FHA).  Down payment requirements can vary depending on the conventional mortgage option you select.

FHA/VA/USDA (Government loans)
These are loans that all have a form of government guaranty.  These loans can have greater flexibility in qualifying as they are guaranteed in some form by the government.  These loans are often times referred to as Government loans.  In many cases they will allow for smaller down payments as well as more flexibility with credit and debt.

MSHDA (Michigan State Housing Development Authority)
This is a program offered by the Michigan State Housing Development Authority.  The program allows for down payment assistance and special interest rates.  The program is generally limited by income and property location.  For a qualified buyer, this program can be a great way to purchase a home.

Construction Loan
A construction loan is generally used to build a brand new home or to complete a large scale renovation to an existing home. You can learn more about construction loans by clicking here.

Renovation Loan
A renovation loan is generally a loan used to make improvements to an existing home.  These loans are available as both a conventional and FHA mortgage.  Each program has pluses and minuses depending on the scope of the improvements to be made and your ability to qualify.

Vacant Land (Lot) Loan
Vacant Land loans are used to purchase land that you intend to build a home on in the future.  In most cases, clients who take a land loan will have it for a short period of time until it is paid off by a construction loan to build their new home.