Michigan Mortgage Rates
February 7, 2016 07:57 AM Eastern
Looking for a mortgage in the Wolverine State? You're on the right page! If you have questions about lending practices in Michigan, the Department of Insurance and Financial Services, Office of Consumer Finance regulates lenders within the state.
Michigan Mortgage Rates
When looking at Michigan mortgage rates, don’t try to compare them to those in other states. Factors such as the state economy, the degree of competition among lenders and the state’s lending laws all vary from one state to another and affect mortgage rates.
Buying a Home in Michigan
Housing prices appear to be on the rise again in Michigan after taking an almost 26% plunge that started at the end of 2005.
At $180,000—the median sale price of a home in Ann Arbor--housing prices there are among the highest in the state, according to the Housing Opportunity Index (HOI). The good news is that if you earn the median income of $84,200, more than 82% of homes in Ann Arbor are affordable.
The picture is similar in other parts of the state where the HOI reports that 85% or more homes are affordable to median income households.
Closing costs are also reasonable at $2,203, some of the lowest in the country ranking Michigan 48th out of 50 states and the District of Columbia.
For households who need financial assistance to buy a home, there are a number of programs offering help with down payments and closing costs:
- Michigan State Housing Development Authority (MSHDA)
- Michigan Down Payment Assistance
- Habitat for Humanity in Michigan – volunteers build new homes or rehabilitate older homes to make homeownership a reality for families in need
Individual cities and towns also offer similar types of assistance.
FHA mortgage rates are not regulated by the government, even though the loans are government-backed. The maximum amount you can borrow is determined by the property location. In most counties the limit is $271,050, but there are some notable exceptions: in Niles-Benton Harbor the cap is $298,750; Warren-Troy-Farmington Hills, $297,500; and in Kalamazoo-Portage, $286,250.
VA Home Loans
The Department of Veterans Affairs does NOT put caps on loan amounts; however, most lenders limit loan amounts to four times the VA guarantee, and that amount varies by property location. Most lenders cap mortgages at $417,000 in all Michigan counties.