By: Stacy Willison | Mortgage Loan Officer
As we all know, life happens. When you are thrown a curveball, Michigan First Credit Union is here to help. Our Turning Point loan is a unique portfolio loan that can help potential buyers who might not fit into the traditional Freddie Mac and Fannie Mae guidelines.
Who might benefit from a Turning Point loan?
- Buyers wanting to purchase a non-warrantable condominium
- Borrowers with past credit challenges, such as, foreclosure and/or bankruptcy
What is a non-warrantable condominium?
Condos that do not meet typical requirements. A few items to keep in mind when trying to determine if a condo is warrantable or not.
- No more than 25% of the building can be used for commercial space
- Homeowner’s Association must set aside 10% of their total budget for replacement reserves
- One person cannot own more than 10% of the total units
- No more than 15% of the units can be more than 30 days delinquent on their HOA dues.
How does bankruptcy and/or foreclosure affect my loan options?
Different mortgage types require waiting periods
- Conventional loans require 4 years from the date of bankruptcy discharge for both Chapter 7 and Chapter 13
- FHA and VA loans are 2 years for a Chapter 7 and 1 year for a Chapter 13
- Conventional loans have a 7-year waiting period from the date the house was sold
- FHA is 3-years
- VA loans 2 years
Michigan First Mortgage’s Turning Point loan does not have the same strict guidelines when it comes to credit challenges. Our portfolio loan does not require a minimum credit score and can be used to purchase both primary residence and second homes. With as little as 10% down and no Private Mortgage Insurance, Michigan First Mortgage can make your dreams of homeownership a reality. Contact one of our loan officers today to see what Michigan First can do for you!