home mortgage

fixed-rate mortgages

A type of home loan where the interest rate and monthly payment remain unchanged for the entire loan term. Fixed-rate mortgages are beneficial for:

• 10-year, 15-year, 20-year, and 30-year*
• Predictable monthly payments. Your principal and interest payments remain the same throughout the loan term, making it easier to manage your budget.
• Protection from interest rate increases. Your rate and payment stay the same, even if interest rates rise.
• Homeowners who plan to stay in your home long-term.

condominium loans

Condominium loans are a mortgage that help people purchase a condo, and are similar to single-family home loans, with additional factors considered when evaluating the applications, such as; HOA fees, special assessments, down payment and interest rates.

ARMs are home loans where the interest rate fluctuates at a set period of time based on the market index, meaning your monthly payment could go up or down throughout the loan term. ARMs are beneficial for:

• 3-year, 5-year, and 7-year
• Lower introductory interest rate compared to fixed-rate mortgages, which can mean lower monthly payments to start.
• Lower overall costs if interest rates remain stable or decrease over time, when compared to a fixed-rate mortgage.
• More homebuying power by starting at a lower rate, which may allow you to qualify for a larger loan than you could with a fixed-rate mortgage.
• Rate caps that limit how much interest can increase at each adjustment period and over the life of the loan.
• A declining interest rate environment.

Balloon mortgages are a type of home loan that tend to have relatively low monthly payments, like you might have a longer-term loan (ex. 30 year) but require a large lump-sum "balloon" payment at the end of the 5- or 7-year term. Balloon mortgages are beneficial for:

• Homebuyers planning to sell, refinance or pay off the balance before the balloon payment is due.
• Borrowers expecting a financial windfall, like a bonus or inheritance, to pay off the loan.
• Investors looking for short-term financing with plans to refinance or sell the property.

FHA loan

Is a mortgage insured by the Federal Housing Administration (FHA). They are popular because they offer low down payments and more flexible credit requirements than other types of mortgages. FHA loans are beneficial for:

• First-time homebuyers. With the lower down payment requirements and the allowance of gifted down payments, make first-time homeownership more accessible.
• Borrowers with lower credit scores.
• Buyers with limited savings for a down payment.
• Buyers who need flexible loan terms (fixed and adjustable-rate options, with multiple term lengths).

MSHDA programs

Michigan State Housing Development Authority (MSHDA) is a state agency that provides financial and technical assistance to create affordable housing.

• MSHDA loans
• First-Generation Down Payment Assistance Program

VA loans

The US Department of Veterans Affairs (VA) guarantees these loans issued by a private lender. The mortgages are designed to help veterans, and their families buy homes. The benefits of VA loans:

• No down payment needed.
• No private mortgage insurance (PMI) required.
• Low closing costs.
• No mortgage pre-payment penalty.
• The VA may offer assistance if you have temporary financial difficulties.

rural development loans

A Rural Development loan is a mortgage that helps you buy homes in rural and suburban areas. The US Department of Agriculture (USDA) backs these loans. The benefits include:

• Appealing for low- and moderate-income home buyers.
• No down payment on some USDA loans.
• Flexible terms and eligibility criteria.
• Competitive rates.
• Low mortgage insurance in the form of a guarantee fee.

A Jumbo loan mortgage is a home loan that is greater in amount than the conforming limits set by Fannie Mae guidelines on conventional mortgages. The conforming limit varies from year-to-year.

• 2025—$806,500.
• Jumbo loans tend to have stricter borrowing criteria, such as higher credit score, higher income, and larger down payments.

A Vacant Land loan, also known as a Lot loan, offers financing for a parcel of vacant land, that you can use to build a custom home, invest in the land or use it for recreation. Benefits include:

• Build your home according to a schedule that works for you.
• You can choose to invest in land, even if you're not ready to build.
• You can use the land for recreation, like hunting or farming.
• You can refinance a Vacant Land loan into a Construction loan, when you're ready to build, and then convert the Construction loan to a mortgage.

Construction loans are typically short term and may have a variable rate that adjusts with the Prime rate or fixed rates. They are used to finance the construction of a new home or building. The loan covers the costs of materials, labor, land, and permits. Here's how they work:

• You will need a signed construction or purchase contract with your builder or developer.
• The loan is paid out in stages as the construction progresses.
• Interest only payments until the construction is complete.
• Once construction is completed, the loan can be paid in a lump sum or converted to a permanent mortgage.
• Construction loans typically have a higher rate of interest because they are riskier for a lender since there is no existing home to use as collateral.
• The construction phase must be completed within 12 months.