Gem Home Loans offers not only FHA loans in Sterling Heights, Michigan, but also many other kinds of home loan programs. You won’t have to deal with frustration of working with an impersonal bank, or another type of lender that only cares about making a huge commission. When you turn to Gem Home Loans, we’ll take the time to spell out all of your options, and recommend the program that will help you get into a new home while, at the same time, protect your financial future.

The Basics of an FHA Loan

FHA Loans Sterling Heights, MichiganA U.S. government agency known as the Federal Housing Administration backs all FHA loans. That means it could be a lot easier to get this kind of loan, because when people can’t pay for it, the government pays the lender. This, of course, reduces the lender’s risks.

There are a lot of regulations that go along with an FHA loan, of course, but at Gem Home Loans we’re experts. We’ll be more than happy to answer any questions you may have. You might, for example, not know that there are many kinds of FHA loans. Here’s a quick look at some of them.

  • EEM – This stands for Energy Efficient Mortgage. If you’re installing a solar energy system, or making other type of upgrades that will lower your energy bill, you might be able to get an FHA EEM loan to help.
  • Home improvement loans – FHA 203(k) loans help people not only purchase new homes, but also make any improvements that may be needed.
  • HECM – The Home Equity Conversion Mortgage is better known as a reverse mortgage – the one you see advertised on television. It’s a way for people 62 and older to get cash from the equity they’ve built in their home. The HECM can provide cash in monthly payments, or can provide a line of credit. You maintain the title to your home.
  • 245(a) loans – This is for people who expect their income to rise in the coming years. You have lower payments at first, and then you pay more as your income increases.

Is an FHA Loan Right for You?

An FHA loan can provide a lot of benefits, especially if you’re buying a home for the first time. You don’t, for instance, have to have a really high credit score. As long as your score is 580 or higher, you might be able to put down as little as 3.5 percent of the price of the home. However, if your score is 579 or lower, you’ll have to pay at least 10 percent down.

On the minus side, the home can’t be a “fixer upper.” It has to meet certain standards. If you’re trying to get a loan for a home that needs a lot of work, you’ll more than likely need to look for another option. There might be a chance you could get a loan through the 203 (k) program. Gem Home Loans can let you know more.

Ready to Take the Next Step? Get in Touch With Us

The experts at Gem Home Loans know everything there is to know regarding FHA loans in Sterling Heights, Michigan. We would love to tell you more, so get in touch when you can. Contact us online or give us a call at (248) 780-1030.