At Guild Mortgage Inlanta, we’re here to help you find the right Michigan mortgage program for your current life situation and future goals. So we don’t expect you to memorize loan program details — that’s what we do full-time!
However, the following list represents the most popular Michigan home loan programs we regularly provide to our clients. The mortgage market together with government programs are constantly introducing new programs and regulations to the mortgage realm. Read on to familiarize yourself with home loan options that may be a good fit, then talk to us to find the best fit and the latest rates.
Many people think that “Conventional” mortgage loan programs require a 20% downpayment and do not involve or include Private Mortgage Insurance (PMI). However, under the umbrella of Freddie Mac and Fannie Mae, it is possible to finance a “conventional” mortgage with as little as 3% down. If you have 20% or more to put down on a home, you do not need to budget for PMI. The advantage of working with Inlanta is that we work with BOTH Freddie Mac and Fannie Mae, which enables us to get you the mortgage that best fits your needs. Conventional mortgages are considered to be “conforming.”
Examples of Freddie Mac and Fannie Mae Special Mortgage Loan Programs
- The Home Possible® mortgage program offers low down payment options and flexible credit terms that make it easier for you buy the home of your dreams. Home Possible® is a registered trademark of Freddie Mac.
- The HomeStyle® Renovation Loan program allows a borrower to renovate, repair, or improve a home or investment property. HomeStyle® Renovation is a registered trademark of Fannie Mae.
- HomeReady® is built for today’s home buyers. HomeReady® offers expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities. HomeReady® is a registered trademark of Fannie Mae.
MSHDA – The Michigan State Housing Development Authority (MSHDA)
MSHDA provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing.
- MI First Home: Offers Down Payment Assistance up to $7,500 available to first-time homebuyers (have not owned a home in the previous three years) statewide and repeat homebuyers in targeted areas. Household income limits apply and can vary depending on family size and property location. Sales Price limit statewide is $224,500. Minimum credit score of 640 required or 660 for multiple-section manufactured homes.
- MI Next Home: Offers Down Payment Assistance up to $7,500 (or 4% of the sales prices – whichever is less). Available to repeat homebuyers statewide. All adults in the household DO NOT need to apply. Only qualifying borrowers (that are repeat homebuyers) will be underwritten for credit, assets and income. Collections and judgments DO NOT necessarily need to be paid off; the lender will follow their Automated Underwriting System findings. Income limits can vary depending on family size and property location. Maximum sales price is $224,500 statewide. Minimum credit score of 660 required.
This mortgage loan program is designed primarily for first-time homebuyers and allows the borrower to put a lower down payment and have less than perfect credit. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.
FHA 203K Rehabilitation Loans
The 203K program has been the primary tool of the Federal Housing Administration (FHA) for providing insured mortgages for the purchase or refinance of single family properties in need of rehabilitation. The standard program is available for homes with necessary major repairs, whereas the Streamline is available for homes in need of repairs on a smaller scale.
USDA Rural Development
This program is designed to make rural housing more affordable. This unique loan program allows you to finance a home with no down payment and little out-of-pocket expense.
This program is designed to help veterans and active duty military personnel purchase a home. There are no private mortgage insurance requirements and less stringent credit requirements than conventional mortgage loan programs. This program also has a low or no down payment option. There are three popular Veterans Administration financing products:
- VA New Home Purchase Mortgage – Requires no down payment as long as the sales price doesn’t exceed the appraised value. Requires no private mortgage insurance premium. VA rules limit the amount you can be charged for closing costs. Closing costs may be paid by the seller. The VA may be able to provide you some assistance if you run into difficulty making payments.
- VA 100% Cashout Refinance – VA’s Cash-Out Refinance Loan is for homeowners who want to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home.
- VA Streamline – Interest Rate Reduction Refinance Loan (IRRL) The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your interest rate by refinancing your existing VA home loan. No appraisal or underwriting package is required when applying for an IRRRL. An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
Homeowners are able to refinance their current home loan for various reasons whether it is to reduce monthly payment, reduce their interest rate, take cash out of their home equity, utilize equity to consolidate debt into lower month obligations, do home improvements, etc.
Guild Mortgage Inlanta offers a variety of home renovation loan programs that allow homebuyers to finance the cost of renovations in with their home purchase or refinance.
A jumbo mortgage is a loan amount above conventional conforming loan limits. Call us to discuss if a jumbo mortgage loan program is suited for you.
Investment Property Loans
Inlanta serves many investor clients who need unique and detailed loan programs to finance and renovate income properties. Contact Us to discuss all of your investment financing options.