Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Why Choose Michigan for Your First Home?
Michigan offers diverse housing options, from urban condos in Detroit to charming lakeside cottages in the Upper Peninsula. With competitive home prices and state-specific financial assistance, Michigan is an attractive destination for first-time buyers.
Key First-Time Homebuyer Loan Programs in Michigan
1. FHA Loans
FHA loans are a popular choice for first-time buyers due to their low down payment and flexible credit requirements. With just a 3.5% down payment and a minimum credit score of 580, this loan is accessible to many new buyers.
Benefits of FHA Loans:
- Low down payment options
- Flexible credit score requirements
- Competitive interest rates
Learn more about FHA Loans.
2. Conventional Loans
If you have a higher credit score, conventional loans might be a better fit. They typically require at least a 3% down payment and offer more flexibility in terms of property types.
Benefits of Conventional Loans:
- Lower mortgage insurance costs
- More property type options
- Higher loan limits
Explore your options with Conventional 30 Year Fixed and Conventional 15 Year Fixed.
3. VA Loans
For veterans, active-duty service members, and eligible spouses, VA loans provide zero down payment options and competitive rates without mortgage insurance.
Benefits of VA Loans:
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
Discover more about VA Loans.
4. USDA Loans
Ideal for those purchasing in rural Michigan, USDA loans offer 100% financing and reduced mortgage insurance rates.
Benefits of USDA Loans:
- Zero down payment
- Reduced mortgage insurance costs
- Flexible credit guidelines
Check if your property is eligible for a USDA Loan.
Additional State-Specific Programs
Michigan Down Payment Assistance (MiDPA)
The Michigan State Housing Development Authority (MSHDA) offers the MiDPA program, providing up to $10,000 in down payment assistance for eligible first-time buyers. To qualify, you must complete a homebuyer education course and meet income limits based on your county.
Michigan Mortgage Credit Certificate (MCC)
The MCC program allows first-time buyers to claim a federal tax credit of up to 20% of their annual mortgage interest, providing significant savings over the life of the loan.
Key Steps to Buying Your First Home in Michigan
- Assess Your Budget: Use a Mortgage Affordability Calculator to determine how much home you can afford.
- Get Pre-Approved: Strengthen your offers by securing a mortgage pre-approval.
- Find the Right Loan: Compare your options using a Loan Comparison Calculator.
- Work with a Real Estate Agent: Partner with a local expert to find the best properties.
- Close on Your Home: Understand the closing process to avoid last-minute surprises.
FAQs for First-Time Homebuyers in Michigan
What credit score do I need to buy a house in Michigan?
Most loan programs require a minimum credit score of 580 for FHA and 620 for conventional loans. VA and USDA loans have more flexible requirements.
How much should I save for a down payment in Michigan?
It depends on your loan type. FHA loans require as little as 3.5%, while conventional loans can start at 3%. VA and USDA loans may require zero down.
Ready to Get Started?
Take the first step toward homeownership. Explore your options and get pre-qualified today to find the perfect loan for your first home in Michigan.
Get Pre-Qualified Now
Read Next
- Buying Your First Home
- FHA vs. Conventional Loans
- Mortgage Insurance Explained: Types and Considerations
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
