Guides
Michigan mortgage guides
Straight answers to the questions buyers actually ask — written for Michigan, with the local programs, taxes, and market realities that generic national advice leaves out.
How to buy a house in Michigan
Buying a house in Michigan follows seven steps: check your credit and budget, get pre-approved with a lender, explore MSHDA down payment assistance, shop with a local agent, make an offer with contingencies, complete inspection and appraisal, and close. What's specific to Michigan is the assistance available — up to $10,000 through the MI 10K DPA — and county property taxes that swing the monthly cost more than the rate does..
Mortgage pre-approval, explained
A mortgage pre-approval is a lender's conditional commitment to lend you a specific amount, issued after verifying your credit, income, and assets. It's much stronger than a pre-qualification, which is a rough estimate from unverified figures.
How much house can you afford in Michigan?
Lenders don't approve a price — they approve a monthly payment, usually capping your total debts at 43–45% of gross income and pricing best under 36%. As a rough guide, a Michigan household earning $75,000–$90,000 can afford around a $300,000 home at today's rates, depending on debts and down payment.
FHA vs conventional: which loan is better?
The short answer: below a 620 credit score or with limited savings, an FHA loan usually wins on approval odds and rate. At 700 or higher, a conventional loan usually wins on total cost, because its private mortgage insurance cancels at 20% equity while FHA's often lasts the life of the loan.
How much down payment do you actually need?
You don't need 20% down to buy a home in Michigan. VA and USDA loans require zero down for eligible buyers, FHA needs 3.5%, and conventional programs go as low as 3%.
Are mortgage points worth it?
Mortgage points are worth it only if you keep the loan past the break-even — the point cost divided by the monthly savings. One point costs 1% of the loan and typically lowers the rate about 0.25%.
Are mortgage rates going down?
Nobody can promise a direction — mortgage rates follow the bond market, which reacts to inflation, Federal Reserve policy, and the broader economy in ways no one forecasts reliably. What you can do is watch the trend, not chase a bottom: our weekly Michigan rate table shows the week-over-week change for every loan type.
What credit score do you need to buy a house in Michigan?
The credit score you need depends on the loan: 500–580 for FHA (3.5% down at 580, 10% below that), 620 for conventional, and 640 for MSHDA down payment assistance in Michigan. VA and USDA loans have no federal minimum, though lenders usually want 620.