Michigan Mortgage Guide ? Help for Buying a Home

Getting a Michigan mortgage can be frustrating for those looking to purchase a home if you have less than perfect credit or limited funds for down payment.? Traditional mortgages that work with borrowers with flawed credit are available, but usually come with higher interest rates making the monthly payment cost prohibitive for the borrower.??? So what do you do??? Take a look at these programs; you might be surprised by the help and mortgages that are available to consumers today for making homeownership a reality.? They aren?t for just first time homebuyers either.

Help From the U. S. Department of Housing and Urban Development ? What does HUD do?

Several home buying assistance programs are available for both first time homebuyers and low to moderate income families.? By definition, only 30% of a household?s income should go toward housing expenses.? Programs from HUD take this affordability definition into consideration when helping consumers purchase a home.? HUD has partnerships with nonprofit agencies and local governments to help those who would not usually qualify for homeownership.

FHA Loans ?

You don?t have to be a first time buyer to apply for an FHA loan, but you cannot obtain this loan if you have an existing FHA loan currently.? The Federal Housing Administration (FHA) makes it easy for homebuyers to get this loan.? Since this Michigan mortgage is insured by the government, the credit requirements are more relaxed.? As of January 2011, FHA loans are less credit restrictive and require only a minimum down payment of 3.5% toward the purchase of the home and mortgage rates are competitive.

ADDI Program ? What is it?

This helps to assist homebuyers with down payment and closing costs for the purchase of a home.? The American Dream Down-Payment Initiative (ADDI) was created to make buying a home more affordable for those who could afford a home, but struggling with down payment and closing costs associated with the Michigan mortgage.? Available to first time homebuyers; a first time home buyer is anyone who has not purchased a home within three years of submitting their loan application.? Qualified applicants can receive 6% of the home?s purchase price or up to $10,000, whichever is greater.? Funds from ADDI can also be used toward home rehabilitation as long as the repairs are made within one year from the date of receiving them.

Homeownership Program

This homeownership program is for Section 8 Housing Choice Voucher recipients who want their rental assistance payment to go toward the purchase of a home.? To be eligible, applicants must be currently participating in the Section 8 program; employed for at least one year and meet the minimum income requirement.? They must be able to qualify for a home mortgage loan with a lender and will be required to attend a homeownership education seminar.

HOME Funds Program

HOME funds are used to develop or rehabilitate properties and sell then sell the homes to qualified buyers at an affordable price.? HUD provides HOME funds to local governments and non-profit agencies so they can administer homeownership programs in their communities. A list of organizations that administer these home buying programs can be found on HUD?s website. Also, HOME funds can be used in conjunction with the Homeownership Voucher program.

These are just a few of the Michigan mortgage and assistance programs available to consumers today.? We know at mortgage.org it can be overwhelming when it comes to getting the right Michigan mortgage.? That?s why we?re here, ?to help?.? Contact us today and let us help you too!