First Time Home Buyer Southfield MI | How To Find A Mortgage In Southfield MI | How Much House Can I Afford? | What Is The Average Down Payment On A House In Southfield MI | What Are My Options for Buying

The process of purchasing a home can be overwhelming for anyone, especially those who haven’t purchased a home before. This guide will provide you with information on how to buy your first home in Southfield MI. Or search for homes in Farmington MI.

Learn About These Options And How They Work.

You should start by looking at what type of loan you qualify for. If you do not qualify for an FHA mortgage, then you should consider a conventional mortgage. Conventional mortgages require less documentation than other types of loans. However, there are some downsides to using a conventional mortgage.

FHA Loans

An FHA loan requires less documentation than a conventional mortgage. This means that you will need to provide only one credit report instead of two. However, the down payment required for an FHA loan is higher than a conventional mortgage.

VA Loans

If you qualify for an FHA loan, you might also be able to take advantage of a VA loan. With a VA loan, you do not need to put down any money as a down payment. Instead, you can use the equity in your current home to pay off the balance of the loan. You must meet certain requirements to qualify for a VA loan, however.

Conventional Mortgages

Another option for first-time buyers is a conventional mortgage. This type of loan requires a 20% down payment, so you will need to save up at least $40,000 before you buy a house. However, with a conventional mortgage, you will still need to make monthly payments for 30 years.