Chat about Macomb County MI real estate & Homes for sale search site

Macomb County MI Real estate

Macomb County MI real estate blog

Confusion abounds about FHA loan limits and MSHDA income limits in Macomb County MI

January 27th, 2012 · 1 Comment · Buyers agency, fha mortgages and first time home buyers, mortgages in michigan

A recent phone call that was placed to me from someone who had read many of my articles for first time home buyers leads to this one being written now.  The caller was confused because she had been led to believe that FHA had income limits, and that the loan limit was part of the equation in determining her new mortgage.  (Loan limit and income limits are apples vs. oranges.  Two totally different things.)

First, let me be clear about something:  FHA does NOT have an income limit for a borrower.

MSHDA does have income limits.   MSHDA is a State of Michigan backed program to help lower income home buyers purchase a home with very little out of pocket costs.

FHA has loan limits.  In Macomb County the maximum loan limit right now is $297,500.   (You can go to HUDs website and look up the FHA current loan limits for any county in the country. )

One other misconception about FHA that the caller asked about: FHA is not limited to first time home buyers.  You may use an FHA backed loan for your 2nd purchase, third purchase, etc.  FHA does require though that you are going to be purchasing the home as your primary residence.  If you’ve sold your previous home then you’re good to go for another FHA mortgage.

Most important:  A home buyer must work closely with their buyers agent AND their mortgage loan representative so that he/she can fully understand all the details of the home buying process.  If you are uncomfortable asking questions (or asking the same question several times) with the people you have hired to help you, then perhaps that is a red flag that you should be seeking out other representation.

Kris Wales – A Macomb County MI real estate agent
SEARCH Macomb County homes for sale

Tags: ··

1 response so far ↓

  • 1 David Farnstrom // Feb 24, 2015 at 7:25 am

    The reason there’s confusion over income limits is simple, no one will state what they are similar to the above article. We’re left with half truths from FHA lenders, anonymous MSHDA/HUD reps and whoever else answers the phone at these offices. Isn’t that the bottom line?

Leave a Comment

Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.