You might have worked with a mortgage broker before that claimed to be the best mortgage company in Bloomfield Hills, Michigan. Unfortunately, it might not have worked out so well. You were disappointed because the company either didn’t have the experience you wanted, or it just looked at you like a dollar figure. When you work with Gem Home Loans, you won’t have to worry about disappointment. We have decades of experience in home loans, and we know how to match you with the best possible program.
Reasons to Consider an FHA Home Loan
If you have 20 percent down for a new house, that’s awesome. Most people, however, don’t have that kind of money in their bank account. If you fall into this category, then you might want to consider pursuing an FHA (Federal Housing Administration) loan. These are just some of the advantages.
- The down payment – With an FHA loan, you may only have to pay 3.5 percent down. There’s even a chance that you could receive the down payment as a gift. This gift could come from someone in your family, a charitable group or a friend. If you tried to get a conventional loan, you probably wouldn’t have this option. Even if that option was available, it might come with substantial limits on how much of a gift you could receive.
- Credit issues aren’t as much of an issue – A lot of us have credit scores that could use some improvement. But even if yours isn’t where you want it to be, that doesn’t have to keep you from getting a new home. FHA loans are designed for people with lower credit scores – as low as 580, in some cases. Conventional loans often require at least a 620 score. Even if your score is in the 500-579 range, you still might get approved. You’d probably need to put 10 percent down if this is the case.
- Flexibility – You don’t necessarily need to be purchasing a traditional house in order to obtain an FHA loan. If you’re looking for a condo or a manufactured home that’s permanently affixed to real estate, you may still be able to qualify.
Potential Disadvantages
There could be some possible drawbacks to an FHA loan as well. Here are just a few to keep in mind.
- Insurance – You’ll have to pay monthly insurance premiums with an FHA loan. Once you build 20 percent equity in your new home, those premiums will go away.
- Limitations – An FHA loan is only for a primary residence. You can’t use it for a vacation getaway or a home you want to flip.
- Safety and health standards – If you want to buy a home you’re going to fix up and sell at a later date, you can’t get an FHA loan. This program doesn’t include homes that don’t meet minimum safety and health standards.
Find Out What Separates Us From All the Others
When we say we’re the best mortgage company in Bloomfield Hills, Michigan, we mean it. Thousands of other people who have worked with Gem Home Loans will tell you the same thing. Find out why they think this way. You can get in touch with us by using our convenient online form, or you can give us a call at (248) 780-1030.
