Home Loans Birmingham, Michigan

There are a lot of different types of home loans in Birmingham, Michigan. Gem Home Loans offers ones you’ve probably heard of, such as conventional, FHA and VA loans. We also offer other programs as well, ones you’re not as familiar with. Here’s a look at one of those programs – loans available through the United States Department of Agriculture (USDA). Take a look and see if you think it might be right for you.

What are USDA Loans?

The USDA provides loans for people who are interested in purchasing homes in suburban or rural areas. The U.S. government backs USDA loans, just like VA and FHA loans. USDA loans have something else in common with those other loans as well – they’re designed for people who don’t have the money to purchase a home through a conventional loan.

USDA loans make it possible for people to buy a home without a down payment, and they also offer low interest rates. But it’s important to note that even though interest rates through this type of loan can be as low as 1 percent, and they often don’t require a down payment, people will still have to purchase mortgage insurance.

The USDA also provides loans to people wanting to either renovate their homes or make needed repairs. There are even packages that combine loans and grants – you could get as much as $27,500. Get in touch with a Gem Home Loans representative to learn more.

How Can I Qualify for a USDA Loan?

There are a few conditions that prospective homebuyers need to meet in order to qualify for a USDA loan. For example, there are income limits that can vary depending on the size of your household as well as the location. We can let you know what those specific limits are when you get in touch.

Here are some of the other requirements associated with USDA loans.

• Income – You need to show a dependable income for at least the last two years. Also, your income must be at a level either at or below the low-income limit for your specific area. Gem Home Loans can let you know if you fall into this category.

• Credit – It will be critically important that you’ve paid all your bills on time. If any of your accounts have gone into collections over the last year, you likely won’t qualify. However, there are some exceptions. If, for example, you can prove your credit was damaged due to circumstances out of your control, you might still be able to qualify. You might have had some sort of medical emergency that caused you to fall behind on your bills. If that’s the case, there’s a chance you could be approved.
  

• Citizenship – USDA loans are only available to U.S. citizens or those who can prove permanent U.S. residency.
  

• Location – In the vast majority of instances, you will not be able to qualify for a USDA home if you wish to live in a metropolitan area. But these loans are now available to residents in almost every county in Michigan outside of major metropolitan areas.
  

Questions? We’re Here to Answer Them

Home loans in Birmingham, Michigan, whether they’re USDA loans or anything else, can be difficult to understand. You won’t have to worry about any complexities when you work with Gem Home Loans. Contact us online or call (248) 780-1030 and we’ll be more than happy to answer all of your questions.