Even with interest rates at historic lows, it seems to be getting harder and harder for first time homebuyers or people with credit blemishes to get a home loan. Higher student loan payments, rents and overall cost of living are keeping people in Ann Arbor, Ypsilanti and all over the country from buying their first home. Well, you have come to the right place to learn about some awesome home loans that your lender may not tell you about or even know about.
When I get a call from a first-time home buyer, sometimes they have a pre-approval and other times they do not. Even though I am not a lender myself, I have a network of lenders that provide an assortment of products that may be unique to your situation.
Often times I will tell them about a program and their response is “why didn’t my lender tell me about that?”
There is a good chance that their lender did not go through the training necessary to implement the program or that their company simply does not offer that product. This is why it is so important to use a well-established local Realtor.
This is a zero percent down loan sponsored by the United States Department of Agriculture. It is designed to assist low to moderate income families in designated areas. There are many areas around Ann Arbor and Ypsilanti that qualify for Rural Development (also called RD) loans.
To qualify, the home must be located in an RD eligible area. Here is the link to the map.
The maximum income for RD eligibility in Washtenaw County is $92,000. Call me today for a certified RD lender to help in your home search.
There are a couple great loan programs offered from the State of Michigan which include: MSHDA Down Payment Assistance. This is a one percent down loan with a $7,500 zero interest loan to assist in down payment and closing costs. My parents were able to buy their first home in 1980 using this very program. As a Realtor, I am so grateful for this program because every year I have sold at least 20 homes to deserving families that otherwise would not have been able to purchase a home.
Most national lenders and brick and mortar banks do not offer this loan so it is one of the best kept secrets in the Ann Arbor area. Here is a link www.michigan.gov/mshda
There are other variations of this program called MI Next Home DPA and MI First Home DPA. Credit requirements above 640 and income limits do apply, so contact me today for a great lender recommendation.
BONUS!! Most lenders and agents do not know you can actually combine the Rural Development and MSHDA Programs for a zero percent down loan with $7,500 down payment assistance.
This is a cool program for Employees of Eastern Michigan University and the Eastern Michigan University Foundation. This program is designed to keep employees of EMU in Ypsilanti and areas of Ypsilanti Township. It is a $7,500 loan that is 20% forgiven each year you live in the home and pay the taxes. Stay in the home for 5 years and it’s like getting a FREE $7,500 toward your purchase.
Are you a Resident coming to the University of Michigan or Ann Arbor area in need of a great Doctor Loan or home buying option. There are a variety of loans especially for Doctors, Dentists and Residents that offer zero percent down, no PMI and options for those saddled with student loan debt. Call or email me for some great lenders looking forward to assisting you.
This is a great way to buy a foreclosed home or a home that most lenders wouldn’t touch because it is in need of some TLC. This loan will allow you to borrow the money to fix up the home and make repairs or improvements. Some lenders even allow you to choose your own contractors! The loan covers a lot of great things including roofs, flooring, windows, lead paint removal, furnace, plumbing, structural, etc. Don’t be discouraged because a home seems to need a lot of work and definitely consider this loan.
When you have a nice down payment, but your credit is borderline or you have non-traditional work and have heard “No” from every lender, it’s time to look at a portfolio loan. These loans are offered by some banks at the same interest rates and underwriting requirements, but with private funds. This means the banks can overlook the short sale or bankruptcy you had a few years ago and make their own determination on your ability to repay. If you have saved some money and every bank has told you “No” it’s time to give me a call and I will get you set up with the right people.