If downpayment assistance is needed almost anywhere in Wayne County,especially for that first home, then contact National Faith HomeBuyers Program, located at 17405 Lasher Road, Detroit, Mich. 48219. Phone: 313-255-9500, Fax: 313-255-9555, or Toll Free at 1-800-267-6559,and the new Taylor location at 12803 Pardee Road.For more info click  www.nationalfaith.org

Family size and income requirements are set and orientation classes are held to explain the entire buying process.

Orientation classes are held every Thursday at 11:00 A.M. and or 7:00 P.M. usually at the agency headquarters site located at 17405 Lasher Road,Detroit,or the new Taylor Office located at 12803 Pardee Road.Call ahead to confirm date and location.There is NO Charge for these classes.

Most applicants in this Wayne County Down Payment Assistance Program will get $5,000 for pre-existing housing, (in the City of Detroit up to $10,000),and $10,000 for new construction.However certain Wayne County cities have incentive programs that offer even more funding.For example the City of Inkster offers $20,000 to $25,000 in new construction funding for certain areas while other cities offer up to $30,000.Call the National Faith HomeBuyers Program at 313-255-9500 for more complete details.

National Latino HomeBuyers Program (In conjunction with National Faith Home Buyers Program)
Contact Gustavo Aguilar-Phone:800-267-6559 Email: latino@homebuyerso.org ,www.suenoamericanogroup.com

Home buyers seeking downpayment assistance in the City of Westland contact: 

Westland Department of Housing and Community Development

Dorsey Community Center

32715 Dorsey Road

Westland,Michigan. 48186-4755

Phone: 734-595-0288 Ext.221 or 223

Maximum assistance is $5,000 towards existing or new home construction.Call for exact details.

To go to the City of Westland click http://www.ci.westland.mi.us/directory/index.php

FHA loans are loans that are insured by Federal Housing Administration. These loans are originated by FHA approved lenders such as mortgage companies, banks, savings and loans, and credit unions. FHA’s role is to provide insurance to the lender in the event the borrower defaults on the loan. Because the insurance is provided by the federal government, lenders are willing to offer FHA loans with very favorable terms to borrowers.

For most FHA loans, both an up-front and a monthly mortgage insurance premium is required. The up-front premium can be included in the loan amount.

The loan amount for an FHA loan is limited depending upon the county where the property in located. In Colorado, the maximum loan amount ranges from $172,632 to $290,319, with the maximum loan amount in the Denver metropolitan area at $261,609.

Key Features

The features of an FHA loans are such that, when combined together, results in a very advantageous loan, especially for the first time homebuyer. These features include the following:

ü      In most cases, only a 3% down payment is required.

ü      Interest rates that are frequently lower than loans with similar features.

ü      Fixed interest rate, fixed payment loans

ü      Adjustable rate loan program with very consumer friendly features

ü      Terms of 15 years and 30 years

ü      Qualification standards that are somewhat easier than most Conventional mortgage loans

FHA Loans vs. Conventional Loans

FHA loans are best suited for borrowers who are limited in the amount of funds available for the downpayment or whose credit history may be less than perfect. The major negatives to FHA loans is the up-front mortgage insurance requirement (which is not required for a Conventional loan) and the loan amount limitation.

FHA loans only require a 3% downpayment while a Conventional loan with a similar interest rate requires a 5% dowpayment. However, FHA loans require an up-front mortgage insurance premium. Even though this up-front premium can be financed in the loan amount, it still means that FHA loans have a higher Closing Costs than a Conventional loan. Thus, if you have the funds to make a 5% downpayment, and your credit history is good, a Conventional loan is a less expensive loan than an FHA loan and probably a better choice.

There are various Conventional loan programs that are available for consumers with a fair to average credit history. However, these loan programs usually require a large downpayment (10%-20%) and have higher interest rates than an FHA loan. Thus, if your credit history is less than perfect, an FHA loan will be a better choice.

What Can an FHA Loan Be Used For?

An FHA loan may be used for the following purposes:

• To buy a home, including townhouse or condominium unit in an FHA-approved project.

• To refinance an existing loan and lower the interest rate

• To refinance an existing home loan and take "cash out".

Mortgage Insurance

The amount of up-front mortgage insurance premium is 1.50%. The monthly mortgage insurance premium varies from 0% - .50% depending upon the term of the loan and the LTV Ratio.  For FHA loans secured by a condominium property, there is only a monthly insurance premium.

First Time Buyers
Take advantage of these mortgage programs:

• 104% Financing - Finance the purchase of your home as well as the closing costs with NO PMI!
  
• 103% Financing - Finance the entire purchase price of your new home plus closing costs with your choice of a low fixed rate or an ARM!
  
• 100% Financing - Finance the entire purchase price of your new home!
  
• 97% Financing - MANY different options available with different rates, terms and PMI options.
  
• 95% Financing - Put 5% down on your home and pay NO PMI!
  
• FHA and - VA Government insured mortgages with flexible credit and underwriting guidelines.
  
• A Minus Loans - Mortgage loans for people with past credit difficulties.
  
• ADDITIONAL LOW INTRODUCTORY RATES!

Your credit score will be the main driving factor in determining which mortgage program you will be able to receive. Click here to receive a FREE copy of your credit reports.