Here are all the changes that are making a difference when buying Metro Detroit real estate.  It doesn't matter if you are buying Livonia real estate, a Detroit home, or an Oakland County home for sale.

 I recently read a blog about a guy who wasn't licensed in real estate that I believed was going to take advantage of seniors.  He wanted to have the seniors buy a home with a hard money loan.   He wanted a hard money loan to avoid FHA safeguards and check and balances.  ( Read the rules FHA has about flipping homes below)   Hard money loans usually have interest rates of 12 to 18% rate.  His company or friends would then fix up the house.  Their charges would be added as a second mortgage to the Metro Detroit home.  Then they would "try" to refinance the senior into a reverse FHA mortgage.  Then the senior would own a home that they have little or no investment into, and be able to live in it the rest of their lives payment free.

It is a great plan to buy Metro Detroit foreclosures and Metro Detroit real estate and have them appraise for a lot more when fixed up.  In theory it is great but Banks and FHA are looking at appraisals hard. 

For a home to be resold through FHA FINANCING, the previous purchase of that home must have happened at least 91 days ago. So, if you purchase a Canton home on April 3 of this year, you cannot get FHA Financing for the Metro Detroit home until approximately July 4.

Also any resales that occur between 91 and 180 days after the last transaction (SOLD) date have a 100% stipulation. If the Metro Detroit home is being sold for more than 100% of the last sales price, FHA will require additional documentation (i.e. a second appraisal) to validate value of the subject property.

So rehabbing or "flipping" through FHA is going to become much harder for inflated appraisals.  Homes that are not truly worth the price the rehabber is trying to get are most likely going to be rejected by FHA and the balance checks they have put into place. 

Check out the side categories for more buyers tips, and mortgage information.  Feel free to Search Michigan homes for sale on my other website.