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Guide to Michigan Mortgages
Maybe you are buying your first home in Michigan, or perhaps you're relocating to Michigan from another state. Then again, you may be a long-time Michigan resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Michigan home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Michigan:
The median price of a home in Michigan is $211,500. Recently, homes in Michigan have been appreciating at rates well above the national average. As a result, income levels in many parts of Michigan are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Michigan are below the national average, Michigan has one of the lowest levels of home affordability in the nation.
In Michigan, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Michigan's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Michigan law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Michigan law enacted a set of anti-predatory lending laws in order to help protect Michigan homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Michigan, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Michigan FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Michigan's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Michigan also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Michigan's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Michigan Housing Finance Agency.
Last Updated: Friday, November 21, 2008
Michigan Real Estate Market View
updated Friday, November 21, 2008
| Housing & Social Facts |
Michigan |
United States |
| Total housing units |
4,478,507 |
n/a |
| Owner-occupied housing units |
74.7% |
66.9% |
| Renter-occupied housing units |
25.3% |
33.1% |
| Vacant housing units |
13.2% |
10.8% |
| Average Home Value |
$149,300 |
$167,500 |
| Average Mortgage Payment |
$1,213.00 |
$1,295.00 |
| Average Rental Payment |
$384 .00 |
$388.00 |
| Total Population |
9,865,583 |
n/a |
| Percentage Male |
48.9% |
49.0% |
| Percentage Female |
51.1% |
51.0% |
| Median Age |
36.9 |
36.4 |
| Under 5 years |
6.6% |
7.0% |
| 18 years and over |
74.5% |
74.6% |
| 65 years and over |
12.1% |
12.1% |
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1 Year Market Value Change for Michigan |
| 1yr | 5yr | 10yr |
 |
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Popular Michigan Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Ann Arbor |
114,024 |
$46,299 |
| Canton |
76,366 |
$72,495 |
| Dearborn |
97,775 |
$44,560 |
| Detroit |
951,270 |
$29,526 |
| Farmington Hills |
82,111 |
$67,493 |
| Flint |
124,943 |
$28,015 |
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| Lakewood Home Finance, Inc. |
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Everyone here at Lakewood Home Finance is dedicated to providing you, our client, with an honest personal touch. Filling out the prequalification request will allow us to provide a complete financial analysis which will clearly show any benefits. This allows you to make an informed decision that will best fit your financial needs. We offer many different terms and programs to choose from for clients with perfect, or less than perfect credit. Pre-qualify now to find out just how much you could be saving! Lakewood Home Finance, Inc. is a Michigan licensed broker located in Grand Rapids Michigan. We provide home financing solutions for home purchases, refinancing, debt consolidations, and home equity lines of credit. We work directly with wholesale lenders to provide the best possible rate and program available for our clients' individual needs. This allows us to find rates and programs typically not available at a local bank. From great credit to poor credit, from large homes to small homes, we offer a vast array of solutions to fit just about any situation. We can help with any situation whether you want to refinance, purchase a home, consolidate debt or build a home. Lakewood Home Finance
2627 East Beltline SE
Grand Rapids, MI 49546
616.301.1450 x109 – Phone
800.276.8819 x109 – Toll Free
616.828.5071 – Fax Lakewood Home Finance, Inc., is a real estate broker licensed by the MI Dept of Real Estate License
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| Sunrise Mortgage |
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Your home is one of the largest financial commitments that you will make in your life and many people view that as just another monthly payment. Sunrise Mortgage Company can assist you to realize that your home is truly a valuable financial tool. We will do everything we can to help you achieve the dreams and aspirations you envision for your future. The mortgage industry is currently undergoing major changes in the way a homeowner obtains home loan financing. With the advent of the computer age, technology is paving the way toward faster and less restrictive lending practices. It is now possible for most borrowers to obtain loan approvals in minutes. This is made possible by our automated submission and underwriting process. Borrowers can apply online or by phone from the comfort of their own home or in a Realtor's office after an offer has been accepted. The choice is truly yours. Our Michigan home loan programs include refinance and purchase programs, debt consolidation, VA (Veteran's Administration) loans, reverse mortgages, vacant land loans, interest only loans, home equity lines of credit (HELOC), 100% financing, guaranteed rural housing programs, second home and vacation home loans, jumbo loans, subprime and ALT A loans, and many, many more. We also have access to commercial loan programs. All credit welcome. Having a low overhead allows us to offer loan programs at such low costs that most other mortgage companies cannot compete. What does this mean for you? When it is all said and done, more money in your pocket and more equity in your home. That's the Sunrise way. Sunrise Mortgage Company
701 W. Bay Street
East Tawas, MI 48730
877.347.8175 – Toll Free
989.362.7999 – Local Sunrise Mortgage is a real estate broker licensed by the MI Dept of Real Estate License
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| Group One Mortgage Corporation |
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Group One offers many financing options to obtain the mortgage that best suits your needs. Whether you are purchasing your first home, moving into a new home or refinancing your present mortgage, Group One can help. A strong and genuine belief in the "customer for life" principal of doing business is what fuels this company. The majority of the company’s production is from previous customer referrals and local real estate professionals. We use the most advanced technology available to close loans quickly, at a low cost. By combining the use of the Internet along with advanced processing software and automated underwriting systems we have taken the mystery out of approving and closing a home loan. At Group One, we realize that every financial situation is different. We also know that choices can sometimes confusing. The mortgage professionals at Group One will guide you through the entire process - from choosing the right mortgage and completing your application right through to closing day. Group One loans: Fixed Rate Mortgages, Adjustable Rate Mortgages, Balloon Mortgages, First Time Buyer Programs, Stated Income Programs, No point, No fee programs, Imperfect Credit Programs, Home Equity Line of Credit and Home Equity Fixed Loan. Group One Mortgage Corp.
19500 Victor Parkway, Suite 120
Livonia, MI 48152
800.821.5888 – Toll Free
734.953.4000 – Phone
734.953.4010 – Fax Group One Mortgage Corporation is a real estate broker licensed by the MI Dept of Real Estate License
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