A lot of people go through a lot of confusion and anxiety when it comes to home loans in Novi, Michigan. But it really doesn’t have to be that way. At Gem Home Loans, we do everything we can to make getting a home loan as easy and stress-free as possible. We will make sure you are completely informed about all of your options, and that you know the advantages and drawbacks. Once you know, you’ll be completely confident in whatever decision you ultimately make.

Different Home Loan Offerings

Home Loans Novi, MichiganGem Home Loans experts will be here to tell you about all of the loan programs we offer. Here are just a few.

Fixed-Rate Loans

Most people opt for this kind of loan because it brings certainty. With a fixed-rate loan, as the name implies, you’ll be paying the same rate for as long as you have the loan. If rates do drop significantly, then you could possibly refinance to take advantage.

A fixed-rate loan will be a good idea if you don’t plan on leaving your home anytime soon. It will also be a good choice if you like stability and predictability. The downside is that you’ll have to put money aside for a down payment. This amount could be as much as 10 or even 20 percent of the total price of the home.

ARM Loans

An adjustable-rate mortgage (ARM) loan is one that will usually result in reduced monthly mortgage payments for about the first 5-10 years. After that, rates will either go up or down, depending on what the prime interest rate is at that particular time. You could really benefit through lower payments, but you could also be caught off guard if they go up.

While there is some uncertainty, an ARM loan might be a good option if your credit score isn’t that great. If you have a lower score, of course, you’re going to have a hard time finding a good rate with a fixed-rate loan. An ARM could also be a good choice if you only plan on being in the home for a short time. You could move before rates increase and save a lot of money in the process.

VA Loans

If you’re either active or retired military, you simply have to look into a VA loan. Millions of people have done just that for about 80 years. Qualification standards are very stringent, but the benefits are incredible. Not only will you not have to put anything down in most instances, you’ll also avoid paying private mortgage insurance (PMI) as part of your monthly mortgage payment.

Again, though, it’s very, very hard to qualify for a VA loan. Even if you are a member of the military, that doesn’t necessarily mean you’ll be able to do so. Talk to a professional with Gem Home Loans to learn more. We’ll clearly spell out what you need to do to be eligible.

FHA Loans

Even if you have no military experience whatsoever, you could still take advantage of a US government loan. An FHA (Federal Housing Authority) loan is one example. If you have a credit score of 580 or higher, you could get into a new home with as little as 3.5 percent down. If your score is lower, then you’ll probably need to put down 10 percent.

The professionals with Gem Home Loans are ready to tell you everything you want to know about home loans in Novi, Michigan. Use our online form or call (248) 780-1030 to get in touch.