FHA Loan Limits increased in Michigan!
I have great news to share. The FHA loan limits have just been increased. We did see a major increase in the new loan limits which was not expected at least here in Michigan. The new loan limit for most county’s in our area is $271,050. That is up from $200,050. FHA is going to be one of the absolute best mortgage solutions for people this year and potentially years to come.The program is not regulated by Fannie Mae or Freddie Mac so even if the property is labeled as being in a “DECLINING MARKET” it does not change the loan structure of FHA loans. Fannie Mae and Freddie Mac make lenders reduce the LTV by 5% for all properties in a declining market. FHA does not require us to reduce LTV’s by 5%.
There are many mortgage brokers and banks in our area that have not been doing FHA’s because they didn’t believe it was a worthwhile program. It is an absolute must in the market today. I’m proud to say that we’ve been advising a lot of our clients in this direction over the past 6 months because of it’s flexibility on LTV, allows for 100% financing in DECLINING MARKETS, has reduced monthly PMI, allows for non-owner occupant borrowers to co-sign, and often times has lower interest rates than a Conventional 30 yr. Fixed program.
If you’d like more information on how this could benefit you or anyone you know do not hesitate to contact me. I am extremely pleased to see the government taking action and making a positive impact on our industry. This will truly be a saving grace for many people today.
I look forward to the opportunity to help