Mortgage Company Trenton, Michigan

When it comes to working with a mortgage company that serves Trenton, Michigan, you want to work with one that will make the process of buying a home as easy and stress-free as possible. You also want one that won’t try to influence you in to taking a certain just kind of loan because it will make the company a huge commission. Gem Home Loans will do all of this and more. We’ll always work in your best interests, and we’ll only recommend a loan program that we know will fit your finances.

Pros and Cons of an FHA Loan

There are a lot of homebuyers out there who don’t have sterling credit scores, and they don’t have 20 percent down to put on a new home. If you’re in either of those categories, you might assume that home ownership is out of reach. But that’s not the case at all.

At Gem Home Loans, we can help you look into a loan backed by the FHA (Federal Housing Administration). We think that getting a home should be something to look forward to, not worry about for weeks or months. Our professionals will be ready to take away as much stress as possible, and to clearly spell out all of the pros and cons of whatever loans we believe you can handle.

An FHA loan is a perfect example. There are advantages and disadvantages to just about any kind of loan program, and this is no exception. Here are a few things to consider.

• If you’re trying to get a so-called “conventional” loan, you’re going to have a pretty good-sized bank account. The reason is that you’re going to have to come up with a 20 percent down payment. That means if you’re looking at a $400,000 house, you’ll need to be able to put down $80,000. That’s a huge ask for the vast majority of homebuyers. If you have that much, great. But if not, you might want to consider an FHA loan. In many instances, you’d only have to put 3.5 percent down.
• With the typical conventional loan, you’ll need to have a credit score no lower than 620. But with an FHA loan, your score doesn’t have to be that high. As long as your score is 580 or higher, there’s a pretty good chance you’ll get approved.
• FHA loans are also pretty flexible. By that, we mean you don’t have to use it for a conventional home, one with a concrete foundation. You could be eligible if you’re thinking of buying a condo, or if you’re interested in a manufactured home. As long as it’s permanently affixed to land, you may be able to qualify.

Again, though, there are a few downsides to an FHA loan, just like most loans. Here are just a few.

• You’ll have pay monthly insurance premiums until you achieve 20 percent equity.
• The loan has to be for your primary residence. If you’re trying to get a loan for a vacation house, or you plan on fixing up the house you buy and then “flipping” it, you’ll have to go another route.
• You might be considering purchasing a really dilapidated house, fixing it up, and living there. Unfortunately, that won’t be an option with an FHA loan. It will have to meet minimum safety and health standards.

See what makes Gem Home Loans stand out from any other mortgage company serving Trenton, Michigan. Contact us online or call (248) 780-1030.