Perhaps you are about to embark on your journey as a first-time homeowner, and you are already thinking about the future. Or maybe you are at retirement age now, trying to decide whether to stay in your home or sell it. Either way, knowing the many benefits of owning a home while you are retired can help you decide what path you want to take. Let’s take a look at a few chief advantages.

 Benefits to Owning Your Home

1. No rent payments. Let’s discuss the most obvious benefit of owning a home in retirement first, which is that you do not have to pay rent. Rent costs hundreds or even thousands of dollars a month, depending on where you live. It is not an investment, just money that goes to lining a landlord’s pockets. Having to deal with that in retirement is not something you want, especially as inflation can keep driving rents upward while your income remains fixed. Living in your own home can help you avoid those ballooning costs. Plus, if you finish paying off your home, you do not have to make any more mortgage payments either.
2. You can take in tenants. Speaking of living on a fixed income, maybe you will find yourself looking for a simple way to make some more money while you are retired. One common practice is to take in paying tenants. This is something you might not be able to do if you did not own a home.
3. A reverse mortgage can supplement your retirement income. A different way to supplement your income during retirement is to take out a reverse mortgage. This option becomes available once you meet the minimum threshold for equity in your home. Reverse mortgages are extremely flexible, since you can use them any way you choose. They do not come due until a maturity event like the sale of the home or the death of the last borrower. This makes them very affordable. Without owning your own home in retirement, you do not have the option of this form of financing.
4. You can enjoy your retirement to its fullest in comfort. As the saying goes, “There’s no place like home.” Renting simply is not as satisfying as owning a home that you can decorate and customize all you want. Since these are the retirement years you worked hard for, you deserve to experience them where you feel most comfortable.
5. You have more money available to do other things. Speaking of enjoying yourself, think about all the money you are saving when you do not have to pay rent. If you are done paying off your mortgage, you can use that money for other purposes. Put it into savings to increase your financial safety net and give yourself greater peace of mind, or spend it on something you care about like upgrading your home, paying for a grandchild’s education, or going on a trip.
6. Your heirs can inherit your home. Owning a home gives you something of substantial material and sentimental worth that you may pass down to your heirs someday. Just as your home brought tremendous value to you, so it can do for your heirs. That said, keep in mind that if you take out a reverse mortgage, that can affect your heirs. They will need to pay it off if they want to keep the home.

Buy a Home or Refinance in Farmington Hills

Buying a home of your own is an excellent investment in your future. During your retirement years, it can help provide financial stability and emotional comfort.  MMS Mortgage Services can help you buy a home with a flexible loan that will fit your needs now and over the years to come. If you already own a home, but your current mortgage no longer is working for you, we can help you refinance so you can stay in your home affordably. To schedule your consultation, please contact MMS Mortgage Services at (248) 788-0800. We can help you buy a home or refinance in Farmington Hills

Have you ever wondered if it is possible to borrow 100% of the money you need to buy a home? Many people believe that the highest possible loan-to-value (LTV) is 97%. But there are mortgages that allow you to borrow 100%. That means that you do not need to make a down payment.

To help you figure out whether you might qualify for one of these mortgage products, let’s discuss them in detail.

Obtaining 100% LTV Is It Possible?

1. VA Loans. The VA loan program allows you to take out a mortgage that is backed by the US Department of Veterans Affairs. To qualify for a VA mortgage, you must be an active-duty service member, veteran, or eligible surviving spouse. There are specific duty requirements as well that you must meet to take out this type of loan. VA loans provide 100% LTV, and require no down payment. In addition, they have relaxed credit requirement, affordable rates, and no private mortgage insurance (PMI) requirement. A VA mortgage is one of the most flexible and affordable loan options out there. So, if you think you might be eligible, it is absolutely worth it to find out. Learn more about VA loans.
2. USDA Loans. Another option for a mortgage that provides 100% LTV and requires no down payment is a UDSA loan. This is a type of mortgage that is guaranteed by the US Department of Agriculture. Unlike with a VA mortgage, there is no service requirement in order to qualify. There is, however, an income cut-off. If you meet that cut-off and you are purchasing your home in a rural area, then you may be able to take out a USDA loan. While the qualification requirements for USDA loans differ quite a bit from those for VA loans, the other advantages are similar. USDA loans have flexible credit requirements and affordable rates. “I’m not shopping for a home in a rural area,” you might think. “This doesn’t really apply to me.” While it is possible you are right, you might want to double-check. What the USDA defines as “rural” is not always intuitive. There are areas that qualify for USDA financing that you would never guess. Find out more about USDA mortgages.

Other Options: FHA and Conventional Loans

A lot of people qualify for VA and USDA mortgages, but obviously not everyone will qualify for either. What if you do not, but still need help with your down payment?

If you think you can afford a low down payment, you might want to apply for an FHA loan guaranteed by the Federal Housing Administration, or even a conventional loan. You will not get 100% LTV, but you can still get a high LTV.

Credit score requirements for FHA loans are pretty flexible. For a conventional loan, you will need a high credit score if you want to keep your down payment low. 

Another Option: Apply for Down Payment Assistance

If you still need more help with your down payment, yet another possibility is to apply for down payment assistance.

MMS Mortgage Services can help you apply for the MI Home Loan program through the Michigan State Housing Development Authority (MSHDA).

MSHDA writes, “The MI Home Loan program is a mortgage product that is available to first-time homebuyers state-wide and repeat homebuyers in targeted areas. All homebuyers work directly with a participating lender.” Discover more about the MI Home Loan program.

We Can Help You Buy a Home Without Waiting

A down payment does not need to be a barrier to buying a home of your own. If you qualify for a VA or USDA mortgage, you can purchase a home with a mortgage product with 100% LTV and no down payment requirement. And even if you do not, you might qualify for a low down payment and/or down payment assistance.

To find out what you qualify for, please contact MMS Mortgage Services at (248) 788-0800. We can help you buy a home affordably in Michigan or 15 others states.

In August, mortgage rates soared to 7.23%, which is the highest they have been in 22 years. If you are buying a home during a time when rates are high, there are certain steps you should take to make homeownership as affordable as possible. Here are a few tips.

 Tips for Buying a Home

1. Have a plan for the future.You do not have to permanently be stuck with high interest rates just because you bought your home when rates were high. Whether you buy a home with a fixed or adjustable mortgage rate, you can refinance later.Also, if you go with an adjustable rate mortgage, it should come with a low introductory rate that can help keep it affordable during this period of high rates.
2. Take advantage of opportunities that might otherwise be unavailable.Homebuyers may turn shy when mortgage rates climb. Home supply is not as high as it could be, but if there is a sufficient drop in demand, the supply could become more available and more affordable. By shopping for a home now, you might find yourself with the chance to buy a home that would not otherwise still be for sale or within your budget. Research your local real estate market to identify these opportunities.
3. Improve your borrower profile. Regardless of when you are purchasing a home, improving your borrower profile can help you qualify for more affordable rates. But at no time is it more important to enhance your profile than when rates are high. When you contact us for a consultation, we will be able to sit down with you and give you personalized advice for how you can improve your borrower profile based on what you tell us about your financial situation.

The following may all help you find affordable mortgage rates:

• Boosting your credit score.
• Increasing your income.
• Decreasing your debts.

4. Make a larger down payment. When you put a large down payment on a home, you do not need to borrow as much. Lenders feel more comfortable with smaller loans, and may thus offer more affordable rates than they would to borrowers who are only putting down a small percentage. Of course, there are other factors that can affect your decision to make a larger or smaller down payment, but it is worth considering if it is within your means to do it.
5. Choose a mortgage company that will work hard to bring you affordable rates. One more tip for buying a home when rates are high is to pick a mortgage company that will strive to offer you affordable rates.

Buy A Home or Refinance in Farmington Hills

The team at MMS Mortgage Services can give you personalized tips to improve your mortgage qualifications, and match you with a lending product that will help you save now and in the future.  Please contact us at (248) 788-0800 to set up your mortgage consultation. We can help you buy a home or refinance in Michigan or 15 others states.