The lending environment in Michigan, much like the rest of the country, is as strict as it has ever been.  While we face , generally, the same lending guidelines nationwide, Michigan has some unique differences as compared to other states.

The biggest of these has to do with value.  Many markets have been labeled as "soft" or "declining" in terms of value and sales cycles.  A big cause of this is the alarming number of foreclosures throughout the state.  This can cause conventional lenders to cut the allowable LTV (Loan To Value) on many programs.  This means down payments on these programs may be larger than in the past (generally 5%).

At the same time, credit score requirements have been raised on many of these programs as well.  Any good news out there?  There's plenty of it

Rates are still low.  AND.  It is a GREAT TIME TO BUY!!!

FHA guidelines have changed little and if anything are better.  FHA rates are Great.  Down payments are low and the maximum loan sizes have just been drastically increased.  FHA has made purchasing a HUD home more attractive than ever.

Our industry is experiencing a cleansing of sorts.  In the long run it will be good for the market, and weed out the bad apples.  It should also, slowly, remove mortgage backed securities from the "Bad News" portion of the news sector.

Borrowers need to get Pre Approved so they understand their financing requirements.

Brendan O'Driscoll
Treadstone Mortgage  brendano@treadstonemortgage.com
616-774-9160  ex 224
25 Commerce SW  Suite 100
Grand Rapids, MI 49503