With all of the explosive growth that Grand Rapids has experienced in the last few years it is no surprise that young professionals are flocking (sometimes returning) to Grand Rapids and its suburbs. One characteristic that many young professionals in Grand Rapids have in common is that many of them are about to be first time home buyers.
While there are countless networking groups, restaurants and bars in our great city for young professionals to enjoy what about home finance options? Good news… there are lots of options on that front too. While young professionals have the same programs available to them as everyone else (mortgages do not discriminate based on age, or anything else) here are some programs that many young professionals we work with find helpful and WHY.
FHA Loans are popular among young professionals because they only require 3.5% down. Additionally FHA mortgages also have guidelines that are at times less stringent than conventional programs.
Added Bonus: FHA also offers a program called the FHA 203k Renovation Loan. This loan product still requires only 3.5% down but lets young professionals (and everyone else) find a home in need of repairs and then roll the cost of renovations and improvements into the loan itself so you still have one low monthly payment.
RD Zero Down Payment Loans
The title here may have given away the surprise but many young professionals who have stable jobs but little banked in savings love the USDA Rural Development Loan. The main feature of this loan is that it requires zero down payment, and has low monthly mortgage insurance. People often think that these loans can only be used on houses in the middle of no-where but that is not the case. Nearby cities like Rockford, Caledonia, Allendale & Zeeland all have areas that qualify.
Stop reading here if you or your spouse are not US veterans. But if you are… then this is a seriously cool program. The VA Veteran mortgage is a zero down payment, zero mortgage insurance, low closing costs— awesome home loan product.
Summing up…. If you are a young professional in Grand Rapids or West Michigan you have made some good choices. We live in a great city, and now you can use these and other mortgage programs to buy a piece of the city to make your own.
*Not all borrowers will qualify; contact us for more information on fees and terms
**These mortgages and all Treadstone offerings are available to all borrowers who qualify not just young professionals.
**Neighborhood Loans is an equal housing lender that does not discriminate on the basis of race, color, religion, national origin, sex, marital status, familial status, disability, source of income or age.