LATHRUP VILLAGE, Mich. (1/12/12)--Michigan First CU is offering an alternative lending option for consumers who have not previously qualified for a traditional mortgage.
"The current state of the housing market creates an excellent opportunity for metro Detroiters to get into the home of their dreams," said Chris Maynard, vice president of lending for the Lathrup Village, Mich.-based Michigan First CU. "Unfortunately the state of the financial industry may create a challenge for many consumers to get a mortgage. With the Turning Point Home Loan, we are able to work closely with our members and simplify some of the requirements of conventional mortgages."
Michigan First CU considers potential borrowers with credit scores as low as 580 for the Turning Point Home Loan program. The $600 million asset credit union will also consider members who have previously filed for bankruptcy, so long as the bankruptcy filing is more than two years ago.
Turning Point Home Loan participants can make a lower down payment--typically about 10%--than a conventional mortgage requires--and private mortgage insurance is usually waived.
Loan terms--10-, 15- and 20-year loans, or a seven-year-year balloon loan similar to a standard 30-year fixed-rate loan--are flexible to fit the needs of borrowers, said the credit union.
The credit union also offers free seminars to help members improve their credit scores and explore lending options.