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. Run a realistic price range in the affordability calculator before you fall in love with a listing above it.
- 580 score: opens FHA financing at 3.5% down
- 620 score: opens conventional loans
- 640 score: the floor for MSHDA down payment assistance
- DTI: lenders generally want total monthly debts under about 43% of gross income
Don't overlook property taxes
Michigan's effective rates run from under 1% up north to over 2% in parts of Wayne County. The taxable value 'uncaps' when you buy, so the seller's current bill can understate yours.
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.
3. Check what assistance you qualify for
Before assuming you need 20% down, look at Michigan's programs. Ask specifically whether your lender originates MI Home Loans.
- MSHDA MI 10K DPA: up to $10,000 toward down payment and closing costs statewide, as a 0%-interest loan
- Detroit: its own program that has offered up to $25,000
- Grand Rapids and Lansing: have their own local funds
- VA and USDA loans: zero down for those who qualify
4. Shop, offer, and close
With a pre-approval in hand, tour homes with a local agent who knows the market's pace.
- Make an offer: include earnest money (1–3% in Michigan) and contingencies
- Add contingencies: financing, inspection, and appraisal protect your deposit if something goes wrong
- Inspection and appraisal: after acceptance the home is inspected and appraised
- Underwriting: your loan is fully underwritten
- Close: sign, pay your cash-to-close, and get the keys
Frequently asked questions
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.