Michigan FHA Home Loan Rates

Have you been wondering lately about Michigan FHA home loan rates? Are you sure if pursuing an FHA loan is even in your best interests? The experts with Gem Home Loansc are here to answer any questions you may have, whether you want to know what kind of loan is right for you, or if you just want to know how the loan process works.

Why Work With Gem?

If you’ve ever worked with a bank or a big lending corporation before, you might not have had that great of an experience. You might have felt pressured into taking a certain kind of loan, one that wasn’t the best for your specific financial situation. The reason is that a lot of those huge lenders really only care about one thing – making a profit. They’ll try to steer people into taking the wrong kind of loan because doing so makes them a huge commission.

Gem Home Loans isn’t like that. Don’t get us wrong – we want to make money like any other company – but we won’t place profits over people. Ever. When you work with us, you can rest assured we’ll only recommend the kinds of loans we feel will be best for you. We won’t pressure you into going with something that just doesn’t feel right. We’ll clearly spell out all of your options so that you can be totally confident in your ultimate choice.

Reasons to Consider FHA Loans

You might not have a great credit score. You might be purchasing a home for the first time. You might not have the money for a big down payment. If any of these apply to you, then an FHA loan will definitely be worth considering.

These are just a few of the reasons why.

• Affordability – The U.S. government, through the Federal Housing Administration, backs FHA loans. As a result, you won’t have to put 10 percent down, like you would if you obtained a conventional loan. More than likely, you’ll only have to come up with closer to 3.5 percent. You might not even have to pay a dime, because the FHA program allows family members, charitable organizations – or even friends – to provide the down payment as a gift.
  

• Flexibility – An FHA loan could help you get into a new home even if your credit score isn’t where it needs to be. As long as your score is at least 580, you’ll probably get approval. A conventional loan typically requires no lower than a 620 score.
  

• You don’t have to buy a traditional house – You might be able to obtain an FHA loan if you want to buy a manufactured home or a condo.
  

What are the Drawbacks?

There are a few disadvantages associated with FHA loans, just like with any other loan program. Here are some to keep in mind.

• Insurance premiums – More than likely, you’ll need to pay for insurance on a monthly basis. But there’s a good chance those payments will go away once you build 20 percent equity in your new house.

• Housing limitations – You can’t get an FHA loan if you’re planning to purchase a vacation getaway. FHA loans are for primary residences only.

• You can’t flip – FHA loans aren’t for people who are trying to buy a distressed home to fix up and sell. There are other kinds of loans you can pursue if this is your plan.

Let the pros with Gem Home Loans tell you more about Michigan FHA home loan rates or anything else you want to know about the different programs that exist. Contact us online or call (248) 780-1030.