MICHIGAN
Frequently Asked Questions
It takes 30 months to recoup the cost of refinancing in Michigan. Everything beyond that 30-month, break-even point will be cost savings.
If you don’t close on a refinance and refuse to sign closing papers, it stops the process of the refinance. The lender will keep the money and you’ll continue with the existing mortgage until you work out another refinancing.
No down-payment private lenders set a credit score of 620 to buy a house. A tip to boost your credit score is to keep your revolving charge card balances to a minimum and paying your bills on time.
You will need a credit score of at least 620 in order to secure a loan to buy a house in Michigan.
Yes, a 600 credit score is high enough to buy a home. There are several mortgage programs specifically tailored to help people with lower credit scores.
The minimum credit score for a construction loan is 680 or higher with a down payment of up to 30%.
No. It is harder to get approved for a construction loan in Michigan than for a typical purchase mortgage.
Yes. The Federal Housing Administration (FHA) has a minimum standard for maximum financing-borrowers with credit scores at 580 or higher.
Here’s how to find funding for house flipping:
- Commercial real estate loans
- Equity crowdfunding
- Home equity loans
- Investment property lines of credit
- Business lines of credit
- Seller financing
- Bridge loans
- Cash out refinance loans
If you’re considering flipping a house for the first time, the general rule is to put down a payment for 20-25% of the purchase price.
Once your loan is approved, you will receive a commitment letter from your private lender. This document outlines the loan terms and mortgage agreement.
According to ClosingCorp, the average closing cost in Michigan is $4,210.71 after taxes, or approximately 2.11% to 4.21% of the final home sale price.
If you are buying a house that is around 1,500 sq. ft., you can allocate a budget around $30L for the rehab (1,500 sq. ft x $20 = $30K)
Yes. House-flipping declined during 2020’s third quarter. While the gross profit on the average flip was $73,766 during last year’s third quarter.
There is a rule which limits homes to be sold for only up to 120% of the original purchase price within the first 90 days. After 90 days, you can sell the home for any amount.
The standard tax consequences of flipping a house, where you own the property for less than 12 months, is the profit you make is subject to your standard taxation rate.
Some experience can be helpful but most people can successfully dive into the industry with little to no background in real estate investment.
Certainly! Michigan real estate can be a solid investment. The median home value in Michigan is $146,200.
Most definitely! Detroit, Michigan is an excellent place to invest in for both cash-flow and property appreciation. Local, out-of-state investors, and even international investors are targeting the incredible opportunities of the Detroit rental market.
Of course! Buying property and real estate is generally a great investment option as it can generate ongoing passive income and can be a good long-term investment if the value increases over time.