Buyer guide
How to buy a house in Michigan
Short answer
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.
1. Know your budget and credit
Start with two numbers: your credit score and your debt-to-income ratio. In Michigan, a 580 score opens FHA financing at 3.5% down, 620 opens conventional loans, and 640 is the floor for MSHDA down payment assistance. Lenders generally want your total monthly debts under about 43% of gross income. Run a realistic price range in the affordability calculator before you fall in love with a listing above it.
Property taxes deserve special attention here. Michigan's effective rates run from under 1% up north to over 2% in parts of Wayne County, and the taxable value 'uncaps' when you buy — so the seller's current bill can understate yours. Budget from the reset value, not the old bill.
2. Get pre-approved (not just pre-qualified)
A pre-approval is a lender's underwritten commitment based on verified credit, income, and assets — far stronger than a quick pre-qualification. In competitive markets like Grand Rapids and metro Detroit, a fully-underwritten pre-approval is often what wins a home over higher offers, because it tells the seller your financing won't fall through. Get quotes from at least two lenders the same day; a quarter-point rate difference is common.
3. Check what assistance you qualify for
Before assuming you need 20% down, look at Michigan's programs. The MSHDA MI 10K DPA offers up to $10,000 toward down payment and closing costs statewide as a 0%-interest loan. Detroit runs its own program that has offered up to $25,000, and cities like Grand Rapids and Lansing have their own funds. VA and USDA loans offer zero down for those who qualify. Ask specifically whether your lender originates MI Home Loans.
4. Shop, offer, and close
With a pre-approval in hand, tour homes with a local agent who knows the market's pace. When you find one, your offer includes earnest money (1–3% in Michigan) and contingencies — financing, inspection, and appraisal — that protect your deposit if something goes wrong. After acceptance, the home is inspected and appraised, your loan is underwritten, and you close: sign, pay your cash-to-close, and get the keys. Budget 2–4% of the price for buyer closing costs on top of the down payment.
Frequently asked questions
What credit score do I need to buy a house in Michigan?
580 opens FHA at 3.5% down, 620 opens conventional loans, and 640 is the minimum for MSHDA down payment assistance. Your rate improves at 680, 700, and 740, so raising your score even after you qualify can save real money.
How much money do I need to buy a house in Michigan?
Less than most people think. With FHA at 3.5% down plus the MI 10K DPA covering much of it, cash-to-close on a $200,000 home can drop from about $13,000 to a few thousand dollars. VA and USDA loans require zero down for eligible buyers.
How long does it take to buy a house in Michigan?
From accepted offer to closing is typically 30–45 days, driven by underwriting, the appraisal, and title work. Getting pre-approved first and responding quickly to lender document requests keeps it on schedule.