By Tina Manshum, Okemos Branch Manager
What is our Turning Point loan you might ask? This type of loan is for the member that may not fit the typical mortgage guidelines of Fannie Mae and Freddie Mac. These are loans that are underwritten, approved, and serviced by Michigan First Mortgage and our parent, Michigan First Credit Union for the life of the loan. This allows Michigan First Mortgage to set guidelines and qualifications for all loans in this program to meet.
These loans also offer flexibility that might not otherwise be an option. This could be to accommodate unwarrantable condos, property improvements, or a life event that caused a credit difficulty that has since been corrected. In some cases, this can also be a good option for self-employment that doesn’t meet typical mortgage guidelines.
While these loans allow for more flexible guidelines, they are also a loan that takes on more risk. With the additional risk, the loans are structured accordingly to offset some of that risk. Typically, you will find that the interest rates will be slightly higher than on a government loan, and there may also be an origination fee as well. You should also consider the fact that the minimum down payment for this type of loan is 10% of the purchase, but could be more.
To learn if a turning point loan is right for you, contact our team here.