Mortgage Company Traverse City, Michigan

If you’re looking for a mortgage company in Traverse City, Michigan, that will treat you like a person instead of a dollar sign, you’ve found it. At Gem Home Loans, we pride ourselves on our client-centric approach. While we’re in business to make money like any other mortgage company, we won’t sacrifice our clients’ financial well being to do it. Our professionals truly care about making sure everyone we serve gets a loan that they can handle – not one that will be a burden for years to come.

FHA Loans – The Pros and Cons

One of the most popular loan programs we handle is backed by the FHA (Federal Housing Administration). Like any other type of program, an FHA loan has its benefits as well as its drawbacks. Here’s a brief rundown of the good and the bad.

The Pros

An FHA loan is a great option for first-time homebuyers, or those who don’t have tens of thousands of dollars they can put toward a down payment. It could also be a great idea if your credit score isn’t that great.

You might be able to get an FHA loan with as little as 3.5 percent down. If you don’t have that much, a friend or family member may be able to “gift” you the down payment – FHA rules allow you to do this. This isn’t an option with so-called “conventional” loans, such as a 15- or 30-year mortgage. Also, conventional loans typically require a minimum down payment of at least 10 percent. Many loans require borrowers to put 20 percent down.

Another reason to consider an FHA loan is if your credit score isn’t where you want it to be. Some borrowers can get approved even if they have a score of 580. If you go the conventional route, your score would probably have to be at least 620.

Finally, FHA loans offer flexibility. You might not be looking for a traditional house. You might want to purchase a manufactured home or a condo. An FHA loan could make that possible.

The Cons

There’s no such thing as a perfect home loan program. There are drawbacks associated with all of them, and FHA loans are no different.

For example, you’ll have to pay an insurance premium each month if you get an FHA loan. However, that requirement will probably disappear once you build 20 percent equity in your new home.

Another drawback is that you can only use an FHA for the home you plan to live in full time. You can’t use it to buy a home you plan to “flip,” and you can’t use it for a vacation home. If you want a house for one of those purposes, you’ll have to pursue another type of loan program. Also, you’ll have a hard time getting an FHA loan for a “fixer upper.” It will have to meet minimum standards for both safety and health.

We’d Love to Meet You

It’s easy for us to say we’re not like any other mortgage company in Traverse City, Michigan. The professionals with Gem Home Loans want the chance to prove it to you. If you’d like to put us to the test, please give us a call whenever you like at (248) 780-1030 or contact us online.