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Drummond Island, MI

The Best Mortgage Lenders in Drummond Island, MI

Compare verified mortgage lenders serving Drummond Island, Michigan. Find competitive rates on conventional, FHA, VA, and jumbo loans from experienced professionals.

3
Top Lenders
4.8
Avg Rating
499+
Reviews
14
Loan Types

Available Loan Programs in Drummond Island

Fixed-rate mortgages
Adjustable-rate mortgages
FHA loans
VA loans
USDA loans
Construction loans
Vacation home loans
Conventional mortgages
Jumbo loans
Construction-to-permanent loans
Second home financing
Refinancing
Conventional loans
First-time homebuyer programs

Featured Mortgage Lenders

1

Lake Superior State University Credit Union

Lake Superior State University Credit Union

★★★★☆
4.8/5

As one of the most established financial institutions in the Eastern Upper Peninsula, LSSU Credit Union has been serving the Drummond Island community for decades. They specialize in vacation home and secondary property financing, which is particularly relevant for Drummond Island's unique market. Their local underwriting expertise and personalized service make them a top choice for island residents. Members consistently praise their competitive rates, flexible terms, and deep understanding of the local real estate market.

Experience:85 years
Reviews:125 customer reviews
650 W Easterday Ave, Sault Ste Marie, MI 49783

Loan Types:

Fixed-rate mortgagesAdjustable-rate mortgagesFHA loansVA loansUSDA loansConstruction loansVacation home loans
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2

Citizens State Bank

Citizens State Bank

★★★★☆
4.7/5

With over a century of service to the Eastern Upper Peninsula, Citizens State Bank has deep roots in the Drummond Island community. They offer specialized expertise in financing vacation properties and waterfront homes, which are common on the island. Their local loan officers understand the unique challenges of island property ownership and provide personalized service throughout the mortgage process. The bank is known for its stability, competitive rates, and commitment to the local community.

Experience:120 years
Reviews:89 customer reviews
235 Ashmun St, Sault Ste Marie, MI 49783

Loan Types:

Conventional mortgagesJumbo loansConstruction-to-permanent loansSecond home financingRefinancing
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3

The Home Loan Expert

New American Funding

★★★★☆
4.9/5

While based in Traverse City, this highly-rated mortgage team serves the entire Upper Peninsula, including Drummond Island. They specialize in rural and vacation property financing and have extensive experience with the unique requirements of island properties. With hundreds of excellent reviews highlighting their responsive service, competitive rates, and expertise in navigating complex property situations, they're a top choice for Drummond Island residents seeking nationwide lending resources with local expertise.

Experience:17 years
Reviews:285 customer reviews
1485 W Front St, Traverse City, MI 49686

Loan Types:

Conventional loansFHA loansVA loansUSDA loansJumbo loansRefinancingFirst-time homebuyer programs
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Frequently Asked Questions

Common questions about mortgage lending in Drummond Island, MI

What are current mortgage rates like for properties on Drummond Island, MI?

Mortgage rates on Drummond Island are typically slightly higher than mainland Michigan averages due to the island's remote location and seasonal economy. Currently, you can expect rates to be approximately 0.125% to 0.25% higher than national averages. Working with lenders experienced with Upper Peninsula properties can help you secure the most competitive rates available.

Are there any special considerations for getting a mortgage on Drummond Island's seasonal or vacation properties?

Yes, financing seasonal or vacation properties on Drummond Island requires specific loan programs as most conventional mortgages require primary residence. You'll typically need a second home or investment property loan, which may require larger down payments (often 20-30%) and have stricter qualification requirements. Lenders may also require additional documentation about the property's rental income potential if applicable.

What local down payment assistance programs are available for Drummond Island homebuyers?

While Drummond Island itself doesn't offer specific programs, homebuyers can access Michigan State Housing Development Authority (MSHDA) programs which are available throughout the state. These include down payment assistance up to $10,000 and first-time homebuyer programs with competitive rates. Additionally, some lenders offer special programs for rural properties that may apply to Drummond Island homes.

How does Drummond Island's remote location affect the mortgage appraisal process?

The island's remote location can complicate appraisals as fewer qualified appraisers serve the area, potentially extending closing timelines by 1-2 weeks. Appraisers must account for the limited comparable sales, especially during off-season months, and may need to consider properties from similar remote Upper Peninsula locations. This can sometimes affect property valuations compared to mainland markets.

Are there specific property types on Drummond Island that present mortgage challenges?

Yes, waterfront properties, homes with private wells/septic systems, and older cabins may face additional scrutiny from lenders. Waterfront homes often require specialized insurance and higher down payments, while properties without municipal utilities need well and septic inspections. Older seasonal cabins may not meet year-round living standards required for conventional financing, potentially limiting loan options.

Mortgage Insights

Finding Your Path to a Drummond Island Home: A Guide to USDA Lenders

Dreaming of a home surrounded by the pristine waters and quiet forests of Drummond Island? For many buyers, the unique charm of this Upper Peninsula community comes with the very real question of financing, especially in a market with limited inventory. If you're searching for "USDA lenders near me," you're likely on the right track to an affordable path to homeownership here. The USDA Rural Development loan program is a powerful tool for eligible Drummond Island buyers, offering 100% financing with no down payment—a significant advantage in a competitive market.

In Drummond Island, the USDA program is particularly relevant because the entire area is classified as rural, making nearly every property potentially eligible. This isn't just for working farms; it applies to most single-family homes you'll find in the island's townships. For buyers drawn to the island's slower pace and natural beauty, this loan can make the difference between dreaming and owning. However, the "near me" part of your search requires a specific strategy. You won't find a USDA loan office on the island itself. Instead, you need to work with a mortgage lender approved to originate these government-backed loans.

Your practical first step is to expand your search beyond a strict geographic radius. Look for Michigan-based lenders or loan officers with proven experience in USDA loans and, ideally, familiarity with the Upper Peninsula's unique property considerations. A lender who understands the nuances of well and septic systems, seasonal road access, and the importance of a thorough home inspection in a remote setting is invaluable. They can properly guide you through the USDA's property eligibility and appraisal requirements specific to our area.

Michigan offers additional support through the Michigan State Housing Development Authority (MSHDA). While MSHDA's down payment assistance programs are popular, it's crucial to consult with your chosen USDA lender about potential combination opportunities. Sometimes, pairing programs can help with closing costs, which is a smart financial move.

Your actionable plan starts here. First, verify your income eligibility for the USDA program for Chippewa County. Income limits are based on your household size and are designed to assist low-to-moderate income families. Next, connect with a few recommended USDA-approved lenders. Ask them directly: "What is your experience closing USDA loans in the Upper Peninsula, and specifically for properties on Drummond Island?" Their answer will tell you a lot. Finally, get pre-qualified before you fall in love with a cabin or waterfront lot. This shows sellers you're a serious, prepared buyer in our tight-knit market.

By focusing your search on the right experienced lender rather than the closest physical office, you unlock the door to one of the most affordable mortgage products available for making Drummond Island your home. Your island sanctuary is within reach.

Nearby Cities

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Why Choose a Mortgage Lender in Drummond Island?

Local Market Knowledge

Lenders who understand Drummond Island's housing market can offer better guidance and competitive rates.

Multiple Loan Options

Access to conventional, FHA, VA, USDA, and jumbo loans tailored to your financial situation.

Proven Track Record

Work with lenders who have years of experience and hundreds of satisfied customers in Michigan.

Ready to Find Your Perfect Mortgage Lender?

Connect with top-rated mortgage professionals in Drummond Island and get competitive rates on your home loan.