Find Out If You Qualify For Low FHA Mortgage Loans - Hall Financial Partners
Housing prices in Michigan have become inflated over the past several years and as a result, many potential home buyers have found it difficult to get a mortgage loan in the state. Although lenders were willing to cut interest rates and make their mortgage loans attractive to Michigan borrowers, a good percentage of people who applied were rejected based on their income levels. Houses simply have been beyond the grasp of most residents in Michigan for the last decade.
In addition, the state of Michigan has enacted legislation that prevents lenders from using creative mortgage loans with adjustable rates in order to get buyers qualified for a mortgage loan. This practice is meant to protect consumers, but it is limiting their ability to find affordable housing options and may actually have caused many people to leave the state in order to purchase a home elsewhere.
Even low FHA mortgage loans, which almost every first time buyer qualifies for, have been nearly impossible to attain. Unfortunately, the consumer protections build in to mortgage reform nationally have negatively affected consumers more than the lenders in Michigan. No policy is perfect, but since it worked in most areas of the country there was no motion to change the laws.
So the good news for buyers is that home prices are showing signs of dropping, meaning more people can buy homes in Michigan with traditional mortgage loans. This means that lenders are getting more business and are able to offer mortgage loans with interest rates that are far below the national average.
This upward movement in the Michigan housing market has been great news for everyone involved. As these loans become more accessible to borrowers, so do homes. This means sellers are then free to buy new homes and the circular cycle will hopefully just continue to expand.
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