Michigan First Time Home Buyer Programs

MICHIGAN first time home buyer programs

Michigan First Time Home Buyer Programs

The days of having to put 20% down to buy a house are over with! Michigan offers a few programs to help out first time home buyers.

MSHDA MI First Home

ownmihomeMichigan offers a great program for first time home buyers called “Mi First Home.” Mi First Home offers buyers up to $7,500 in down payment assistance! If the downpayment is holding you back from buying a home, this program is for you. Take note, this is a loan and has to be paid back upon sale or transfer of the property.

Find a local lender who participates in the Mi First Home program here.

Do you qualify for the MI First Home Program?

MI First Home Down Payment Assistance (DPA) description and eligility requirements:

  • Available to first-time homebuyers statewide and repeat homebuyers in targeted areas. (A first-time homebuyer is someone that has not owned a home in the previous three years.)
  • A minimum credit score of 640 is required or 660 for multiple-section manufactured homes permanently affixed to a foundation, built after June 14, 1976 and taxed as real estate (not located in a rent/lease community).
  • All adults in the household intending to occupy the residence must co-apply and credit qualify for the mortgage loan.  Exceptions are made only for children who are verified to be full-time students (high-school or baccalaureate level).

You can learn more about MSHDA MI First Home here.

VA Loans

va-loanService member or Veteran? The U.S. Department of Veterans Affairs offers 0% down VA loans. No downpayment or private mortgage insurance. This program is exclusively for veterans or service member.

  • Zero down
  • 620 minimum credit score
  • Fixed rate programs exclusively for veteran buyers or active duty military
  • No private mortgage insurance (PMI)
  • No maximum limit

USDA Loans

usda-loanThe United States Department of Agriculture offers multiple options for buyers searching in a rural area. USDA also offers 0% down loans but they are typically harder to qualify for. The property must be located in a targeted rural area and some income restrictions apply. You can see the eligibility requirements here.

  • Zero down
  • 620 minimum credit score
  • Property must be located in targeted rural area.
  • Income restrictions.

FHA Loans

fha logoFederal Housing Administration (FHA) offers loans with down payments as low as 3.5%. FHA loans are very popular with first time home buyers because the requirements aren’t as strict. Buyers can qualify for an FHA loan with a credit score of 580 or higher and only 3.5% down.  

  • Down payment as low as 3.5%
  • 580 minimum credit score
  • FHA lending limit – $271,050

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