Types of loans

Thirty Year Fixed-Rate Mortgage
The traditional 30 year fixed-rate mortgage has a constant interest rate and monthly principal and interest payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen Year Fixed-Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate -- and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

Hybrid ARM (1/1 ARM or 5/1 ARM)
These increasingly popular ARMS -- also called 3/1, 5/1 or 7/1 -- can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

FHA
This is a Government Insured program for purchase and refinance transactions. Eligible terms are 30 year and 15 year. On purchases borrowers are required to have a 3.5% down payment/cash investment that can be their own funds or gift funds from family. Sellers can also pay up to 6% in borrowers closing costs and/or pre-paids and/or discount points. Borrowers can actually come to close with no funds of their own which makes this a “zero down” situation and is a great program for first time home buyers. Cash Out Refinance is eligible up to 85% LTV (certain restrictions apply) and Rate & Term Refinance is eligible up to 97.75% LTV. Loan must meet all FHA requirements.

30 Year, 15 Year, and 3/1 ARM Jumbo Loans
We also offer 30 year and 15 year jumbo loans wich are offered for loan amounts that are over $417,000 and up to $1,000,000.

Rural Development Mortgage
The Rural Development 30 Year Fixed Rate Mortgage product is a unique government loan program offered by the US Department of Agriculture. This type of home financing is available in certain rural areas in the state of Michigan. It allows for financing up to 100% of the home’s value with no down payment or mortgage insurance required for qualified applicants. Eligibility may also vary based on total household income. There is a required 3.5% loan funding fee that may be included in the total loan amount. Interest on the portion of loan exceeding the Fair Market Value of the home is not tax deductible for federal income tax purposes. Please consult your tax adviser for further information regarding deductibility of interest and charges.

VA Mortgage
This special government loan program was designed for honorably discharged veterans, certain members of the Selected Reserve, active duty service personnel and certain categories of spouses of veterans. Its purpose is to help veterans refinance or purchase homes with favorable loan terms and qualification guidelines. It allows for financing up to 100% of the home’s value with no down payment or mortgage insurance required for qualified applicants. Interest on the portion of loan exceeding the Fair Market Value of the home is not tax deductible for federal income tax purposes. Please consult your tax adviser for further information regarding deductibility of interest and charges.

MSHDA
A 30 year fixed rate mortgage provides a monthly payment that doesn't change. The fixed rate mortgage is the most popular loan option available today. Like all the loan programs we offer, there is no prepayment penalty - you can make extra payments monthly or pay off the loan early without penalties or fees.
This loan is offered through the Michigan State Housing Development Authority. Eligibility may vary based upon property location, prior home ownership and total household income.

Builder Construction Loans are also available.
Please contact our office for further information.