How much down payment do I need to buy a house in Michigan?

You can buy a home in Michigan with as little as 0% down (VA/USDA), 3% down ($7,050 conventional), or 3.5% down ($8,225 FHA) on the median-priced home of $235,000.

What income do I need to buy a home in Michigan?

To afford the median-priced home in Michigan ($235,000) with a 30-year mortgage at 6.12%, you typically need a household income of approximately $57,771 per year (using the 28% rule). The median income in Michigan is $63,202.

What is the FHA loan limit in Michigan for 2026?

The FHA loan limit in Michigan for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Michigan 2026

Q: What first-time home buyer programs are available in Michigan?

Michigan offers 2 major first-time buyer programs including MSHDA DPA, Michigan Homeownership DPA. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Michigan. 2+ down payment assistance programs, FHA loans from 5.92%, and step-by-step guidance.

Median Price

$235,000

Min Down (FHA)

$8,225

DPA Programs

Best Rate

5.92%

Check My Michigan Eligibility

What First-Time Buyer Programs Are Available in Michigan?

Michigan offers 2 major first-time home buyer assistance programs. These include MSHDA DPA, Michigan Homeownership DPA. Programs provide up to $10,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Michigan?

You can buy a home in Michigan with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$8,225), and conventional loans start at 3% ($$7,050) on the median price of $235,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,389	620
USDA Loan	0%	$0	$1,427	640
Conventional 3%	3%	$7,050	$1,384	620
FHA Loan	3.5%	$8,225	$1,348	580
Conventional 20%	20%	$47,000	$1,142	620

Michigan Down Payment Assistance Programs

MSHDA DPA

Up to $10,000 DPA for eligible buyers

Up to $10,000deferred

Michigan Homeownership DPA

Grants for first-time buyers in target areas

Up to $7,500grant

5 Steps to Buy Your First Home in Michigan

To buy your first home in Michigan, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Michigan, you may need as little as $8,225 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Michigan rates: 6.12% (30-year), 5.92% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Michigan DPA Programs

Michigan has 2+ DPA programs. The MSHDA DPA offers up to $10,000. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Michigan: Detroit, Grand Rapids, Ann Arbor, Lansing, Kalamazoo. Median price is $235,000 (+6.8% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Michigan typically run 2-5% of the purchase price ($7,050-$11,750). Some DPA programs also cover closing costs.

Start Your Michigan Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

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Michigan First-Time Buyer FAQ

What first-time home buyer programs are available in Michigan?

Michigan offers 2 major programs: MSHDA DPA, Michigan Homeownership DPA. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.