Mortgage in Michigan
Once an economic powerhouse, thanks to the automobile, Michigan has a long history of providing quality jobs for people from all walks of life. It's still the headquarters of Ford and GM. Thanks to the Great Lakes, Michigan also offers a high-quality lifestyle for outdoor enthusiasts. It also has an average home price below $200k , which means your money goes so much further in Michigan than elsewhere. If you're considering a move to Michigan, try our Michigan mortgage calculator to get a sense of how much you'll pay for housing!
Michigan Mortgage Calculator: Your Options for a Loan
Those looking to move to Michigan or move within the state should know about three primary mortgage types.
- Michigan conventional mortgage: With housing being relatively inexpensive in Michigan, most people should get a traditional conforming mortgage. This designation would mean that buyers can get a home with as little as 3% down and a credit score above 620.
- Michigan FHA mortgage: FHA loans are perfect for the Michigan market due to their low down payments and credit score requirements. You can put as little as 3.5% down and have a credit score as low as 500 (between 500-580 requires 10% down).
- Michigan VA mortgage: For those who have served or are continuing to serve our nation, the VA mortgage represents the best deal. You'll be able to put $0 down, and this loan doesn't need any PMI.
With Michigan's relative affordability, you should be able to get one of the above loans for a home in the state. Of course, you'll still need some down payment. Thankfully, the state has a program to assist with that.
First-Time Homebuyers in Michigan
There are three primary programs that the Michigan State Housing Development Authority offers to prospective homebuyers.
This program offers competitive interest rates. Additionally, borrowers can get down payment assistance of up to $7,500.
Eligibility Criteria: Income and purchase price limitations apply. Anyone getting the down payment assistance must take a homebuyer education class. All applicants must have a minimum credit score of 640 for regular homes and 660 for multiple-section manufactured homes.
As the name implies, the Flex version is a little more flexible than the MI Home Loan. Buyers will still get the same down payment assistance of up to $7,500.
Eligibility Criteria: Borrowers must meet income limits, and there are sales price restrictions. All applicants must have a minimum credit score of 660.
The mortgage credit certificate lets you get a non-refundable tax credit of 20% of the interest you pay on your mortgage each calendar year. The maximum benefit is $2,000.
Eligibility Criteria: Income and purchase price restrictions apply.
Michigan Mortgage Calculator: You Could Save Money Moving
Given that Michigan has relatively inexpensive housing, most people looking to move to this state save quite a bit. They'll not only save on housing costs but also on other necessities. Use this Michigan mortgage calculator to see how much a mortgage here will cost. You might save in the long-term by moving!