Michigan FHA

Looking to purchase a home in the Michigan area? There are many areas to research during the process, and one of the most important decisions you will make is how to finance such a large purpose. While exploring your financing options, you may want to consider an FHA Home Loan, especially if you are a first-time homebuyer.

They are particularly appealing to first-time buyers because of the low down payment, which may be as low as 3.5 percent, compared to a conventional loan where the minimum is 10 percent. A couple of other benefits are that most of the closing costs can be factored into the loan, and it is easier to qualify for an FHA loan opposed to other methods if you have less than perfect credit.

The term FHA Loan may lead some people to think that the government lends the money, but this is not the case. Rather, a bank or mortgage company lends the money and the loan is backed by Housing and Urban Development (HUD). For this reason, if you were to default on the loan, HUD guarantees that not all of the money will be lost to the lending institution, and they will be repaid some of the loan amount.

To be eligible for an FHA Loan in Michigan, you must meet the following requirements:

• Able to make at least a 3.5 percent down payment
• The home you plan to purchase must be your primary residence
• The residence must either be a home, condo or manufactured home
• For the last three years, you must have had stable income

The following are the maximum loan amounts in Michigan for which you can qualify and are broken down according to county:

The most common loan limit for an FHA Home Loan in Michigan is:

• Single family home: $271,050
• Duplex: $347,000
• Tri-plex: $419,425
• Four-plex: $521,250

If you are looking to purchase in the metropolitan area, the loan limits increase according to county:

Kalamazoo and Van Buren:

• Single family home: $286,250
• Duplex: $366,450
• Tri-plex: $442,950
• Four-plex: $550,450

Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Wayne (Warren-Troy-Farmington Hills metropolis):

• Single family home: $297,500
• Duplex: $380,850
• Tri-plex: $460,350
• Four-plex: $572,100

Berrien (Niles-Benton Harbor MSA):

• Single family home: $298,750
• Duplex: $382,450
• Tri-plex: $462,300
• Four-plex: $574,500

Washtenaw (Ann Arbor MSA):

• Single family home: $345,000
• Duplex: $441,650
• Tri-plex: $533,850
• Four-plex: $663,450

Now that you may have an idea of where in Michigan you may want to purchase, it’s time to find a lender and move forward with the process. It is always important to find one that you trust and can go to with any and all questions, so make sure to do your research on the bank or mortgage company before you commit to anything. You can search for an FHA lender on HUD’s web site

Guest blog written by
Michael Blumreich
FHAMortgageCenter.com.

The Michigan Department of Natural Resources and Environment introduced a new tool for selecting your next hunting, trapping or outdoor recreation spot — an interactive mapping application called Mi-HUNT (www.michigan.gov/mihunt).

This allows users to navigate through all public lands open to hunting and trapping in Michigan. Mi-HUNT displays multiple layers of information, which can be customized to fit your specific outdoor interests and trip planning needs.

Try it out; it is easy and fun to see topogophy, etc.  Let me know what you think.

If you are thinking of finding a home near a recreation area; let us know.  We spcialize in big and small houses and would love to thelp you find your next dream home.

Ann Arbor Area Real Estate Update for Chelsea, Michigan

Chelsea, Michigan Real Estate Statistics

Click on picture for Chelsea, Michigan Tour.

As of January 31, there were 146 active Chelsea homes for sale: ranging from 1 bedroom to 6, 1 bath to 7 and prices from $45,000 to $950,000. The average asking list price per square feet was up to $124.94 and average asking price is $248,180. If you want Chelsea properties or Ann Arbor properties click either.

There have been 105 homes sold in Chelsea in the last 12 months ranging in bedrooms from 1 to 6 and baths from 1 to 6 bedrooms. The largest home sold is 4,725 square feet down to the smallest at 600 square feet.

The average list price of the homes that sold in the last 12 months $183,762 and the average sold price was $176,376. This represents an average sold price per square feet of $99.68 last month. The sellers got an average of 97% of asking price these last 12 months.  The Chelsea Real Estate Market average sold price per square foot is graphed below courtesy of Affinity Valuations Group, LLC.  The average sale price per square foot has trended up but remains under $100.00 per square foot.

The chart below shows there is about 12 month supply of homes for sale in Chelsea, Michigan, so we are still in a buyers market and may be stabilizing unless we see a rash of foreclosure homes hit the market. The inventory under $200,000 is shrinking and we are seeing multiple offers. There is still an abundance of choice, low interest rates and great prices. There are 11.6 months of supply.

Other charts below show the trends over the last 12 months. The first chart – Chelsea: Median Price (FS, Sold) shows home asking prices are down 16% and sold prices are up 92% comparing January 09 to January 10 with trend lines showing slight increasing sold prices over the last 12 months.

Chart 2 Chelsea: Supply & Demand – # Units (FS, Sold) below shows units for sale from January 09 to January 10 are down 4% and sold units up 11%. At least the number of active homes for sale was down slightly indicating we are on the way to stabilizing.  To be one of the homes picked, keep in mind this is a price war and a beauty contest. Consult with your agent about making your home stand out. Ask about staging your Chelsea home.

There is still an abundance of choice, low interest rates and great prices. If you know any one who is a first time home buyer looking to use the home buyer tax credit, updates are posted. Let us know if you are coming to our next home buyer round table/seminar this month: 734-845-6542. If you want to glimpse our Ann Arbor Area videos, click here. If you want a bank owned home, call us. Banks hire us to sell these homes and we know about these Ann Arbor Area foreclosures long before they are ready to come on the market.

Want to know what your Ann Arbor Area home is worth?

CHELSEA RIDGE SUBDIVISION: Chelsea, Michigan offers such a selection of neighborhoods to homebuyers. All of its developments offer a high quality of life to its residents that it is often hard to pick just one place you like!

This Chelsea subdivision is one community which offers a great lifestyle and luxurious properties, it is called Chelsea Ridge.

The community is close to downtown Chelsea and all its shops and amenities. It also comes under the catchment areas for great schools!

We have moved many buyers here; we sold a great 3 bedroom 3.5 bathroom home (you can see the Chelsea Ridge  listing here) and we have a current listing in the community which is at 1483 Auston Lane, it is a great single family home containing four bedrooms, two and a half bathrooms.

The development has an active homeowners association – click here to see their master deed.

See below for an aerial shot of the 59 homes sites in the Chelsea Ridge neighborhood:

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

What is happening with the absorption rates for the Chelsea Real Estate market? Homes in Chelsea have gone from about 12 months of supply in January to 14 months in June. If no other Chelsea residential homes were put on the market, it would take 14 months to sell these homes.

Chelsea Real Estate Market Data from 2006 to 2009 is graphed below: 

Note the downward trend of Average Sale and Asking Prices in yellow and green respectively. See how the units sold have remained flat. The number of new listings have declined slightly.

Click here to find out more about Chelsea and to search for homes in Chelsea. We are selling homes here and in fact listed a home in Chelsea Ridge and got multiple offers.  I have posted sold Chelsea, Michigan homes.

Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

Average Sold Price in Chelsea, Michigan Declined

Currently there are 160 homes for sale ranging in price from $1,125,000 to $40,000. There are 10 homes listed over $500,000 for the luxury Chelsea homes and Chelsea Real Estate market, up from 9 last month. On the other end there are 4 homes listed under $100,000. For any information on these active homes, be sure to ask us.

The Average sold price in Chelsea declined last month. Chelsea sold homes data is as follows:

Month Units Ave Sold Price Ave Price/SqFt DOM*

Jan 108 $130,875 $73.83 45

Feb 8 $177,688 $83.19 19

Mar 7 $185,512 $90.11 88

April 8 $137,375 $87.58 45

The average list price to sale price for April was 86.33 percent without concessions. Total concessions for this month were $18,000. The median sold price for April was $124,000.

When the gap between the list prices and the sold prices narrows, (supply and demand) the market will be more stable. Our buyer agents have several Chelsea homes under contract, awaiting closing. We have several more buyers looking for Chelsea homes right now. The $8,000 first time home buyer tax credit is allowing more buyers to enter in the market. We are seeing multiple offers on properties.

Regarding absorption, see chart below:

We have gone from one year supply of homes in Jan 09′ to over 1.5 years of supply.  If no other homes came on the market, it would take 19.52 months to sell all of the homes; this is the current absorption rate.  Compare this to an absorption rate of 9.8 months in Ann Arbor, MI.

For more information on what is happening with Washteanw County homes for sale or sold in Chelsea, MI. please call us 734-426-6669.

*Days on market may be understated because it starts at day zero when it is listed as a new listing with new agent. The Ann Arbor Area Board Sales price does not consider concessions.

Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

The White Oak Inn is located at Chelsea Community Hospital and serves as a home-away-from-home while you or a family member is in the hospital. Ten guest rooms are equipped with two twin beds, a queen-sized bed or a single bed with trundle, a private bath, cable TV, and a telephone with voice mail. We explore the inside including the kitchen in the Chelsea Oak Inn video.  Drug store, grocery and hospital are within walking distance.  Chelsea Community Hospital’s Health & Wellness Center is a 46,000 square foot facility, which features fitness instruction, classes and equipment, including a lap pool, workout equipment, and cardiovascular classes and equipment. Guest passes for the Wellness Center are available to guests. For reservations call (734) 475-4181.  No smoking and pets.

I was there for a nutritional cooking class held in the main media room.  The person touring us through this facility is Sarah with community and senior health.  Chelsea Community hospital is well known for community involvement.  They have been purchased by parent Trinity Health organization and will merge with St Joseph Mercy Health System in 2009.  I feel that this is a very inviting private setting,  perfect for being close to the hospital and sick loved ones.

For more information on the Chelsea schools and wonderful Chelsea Community take a look, and view some of our videos.  We are here to share our Ann Arbor real estate resources, Chelsea city information and welcome you to our area or help find your Ann Arbor area dream home.

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Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty