Home Buying in Michigan with Down Payment Assistance and FHA
For those looking to buy a home in the state of Michigan, the choice of opting for down payment assistance and a FHA home loan are two things to consider. These loans come with great low down payment rates, reasonable interest rates based on a competitive market, sometimes covered closing costs, opportunities for borrowers with low credit, and the benefit of government backed mortgage insurance. These types of loans are great for first time home buyers especially, as their low down payment rates allow these buyers to close on their home more quickly.
While the down payment rates are kept low, the interest rates associated with FHA home loans are kept low as well, allowing prospective home buyers in the state of Michigan to have an option that allows for both a low down payment and low interest over time. Many non-FHA home loans in the state will offer low down payment costs with the catch of higher interest rates to be paid over time, but this is not the case with Michigan's FHA home loans.
FHA home loans throughout the state of Michigan will have varying limits, however, and it is best for home buyers to research the limits on homes in the areas they are looking to live in. More expensive areas of Michigan will have higher home loan limits, while the lower income portions of the state will reflect this status as well. These limits are often based on a combination of local income and the median housing prices being found currently on the market, which also makes these limits subject to change. FHA home loan limits in Michigan may change on a year to year basis depending on the status of the housing market and income levels of Michigan residents at any given time, allowing limits to remain fair for residents and borrowers alike.
For more expensive regions in Michigan such as Benzie County, the housing limits being seen for 2014 reach around $168,000, with lower income regions like Iron County only seeing limits of around $44,000. These prices reflect the average housing prices of an area, and a suitable home is likely to be found within any county under the home loan limit amount.
It is best for any prospective home buyer in the state of Michigan to research the FHA home loan limits in a given area carefully before applying for a FHA home loan, to ensure that their desired home meets any local Michigan home loan limit requirements.
Michigan Home Buying Resources:
HUD Help for Home Buying in Michigan
Downpayment Assistance for Buying a House in Michigan