New FHA Guidelines for Buyers in Ann Arbor and Saline, MI
The FHA Loan, has come back into style after years of being hidden with most people using the 80/20 or 80/10/10 loans. Two years ago the FHA made adjustment to the FHA appraisals and inspections. They have loosened their inspections requirements and are really only concerned about the safety of the buyers.
FHA Loans are not credit score driven, there is no minimum credit requirement. You do not have to be a U.S. Citizen to get an FHA loan. The down payment required is only 3% and can be negotiated with the sellers with a good offer.
The Department of Housing and Urban Development (HUD) has updated their web-site to reflect the new FHA loan limits for Michigan indicating a floor amount of $271,050 and a maximum lending limit of $345,000 depending on the county (including Washtenaw County). In Washtenaw County we can get you qualified to finance up to $345,000.
HUD FHA Mortgage limit web-site: Click Here A brief refresher on FHA:
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- Flexible Debt to income ratios of 31/43.
- Minimum cash investment by purchaser of only 3%.
- 97% Loan to Value financing.
- Seller financing concessions/contributions can be 6% of sales price.
- Cash reserves are not required for the purchase of a single family residence.
- Gift Funds- All funds can be gifted if originating from an approved source.
- Loans are assumable to a qualified individual.
- Down Payment Assistance Programs (DPAs) are available. (combine with Seller paid closing cost and prepaids = 100% financing)
- There is no pre-payment penalty.
- FHA loans are not credit score driven; there is no minimum FICO requirement.
- Citizenship is not required.
- Non-occupying co-borrower allowed.
- No LTV restrictions for “soft market” or “declining market” areas.
- Seasoning for Chapter 7 bankruptcy is just 24 months (shorter possible for extenuating circumstances)
- You can check the HUD website for approved tradition condos by city or zip code.)
You can begin your home search for all homes in Washtenaw County here.
March 9th, 2008 at 11:43 am
Missy this is all much needed good news for home buyers today. Appreciate all the details
March 9th, 2008 at 1:50 pm
Thanks Cyndee, I am really happy it is up to 345K in Washtenaw County. FHA has always been a good loan program, we bought our first house with it way back when.
March 13th, 2008 at 12:20 pm
This opens a door to so many who want to own a house. With the limits being raised finally a median price house is an option. I suspect many offices are being swarmed with this news last week and a sign of things begining to pick up in the housing market. I think the conforming and jumbo loans will do the same when they are available.