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Conventional loans in Michigan

Quick answer

Conventional loans in Michigan allow as little as 3% down (about $6,528 on a $217,600 home) with a 620+ credit score, up to the $832,750 baseline conforming limit.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Conventional loan snapshot for Michigan

ItemEstimate
Minimum down payment3%
Minimum credit score620
Typical MI home value$217,600
3.5% down on typical home$7,616
20% down on typical home$43,520
Avg. effective property tax1.28%/yr (~$233/mo)
Income for typical home (31% rule)$71,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Michigan programs pair with Conventional loans?

  • MI Home Loan: A 30-year fixed loan for first-time and repeat buyers in targeted areas, within income and price limits.
  • MI 10K DPA: Up to $10,000 of 0% deferred down payment assistance paired with the MI Home Loan.

Details and current limits: Michigan State Housing Development Authority (MSHDA).

How does a conventional loan work?

Conventional loans are made by private lenders and usually sold to Fannie Mae or Freddie Mac. Because they follow those agencies' guidelines, they're called conforming loans. You can choose a fixed rate (15, 20 or 30 years) or an adjustable rate.

Your rate and mortgage insurance cost depend heavily on your credit score and down payment, so improving either before you apply can noticeably lower your payment.

Who qualifies for a conventional loan?

  • Credit score: generally 620 minimum.
  • Debt-to-income (DTI): up to 45%, and sometimes 50% with strong compensating factors.
  • Down payment: 3% (HomeReady, Home Possible, 97% LTV programs) to 5%+.
  • Steady, documented income — usually two years of history.
  • Property: primary homes, second homes and investment properties are all allowed (with higher down payments for non-primary homes).

Conventional loans in Michigan cities

Conventional in DetroitConventional in Grand RapidsConventional in WarrenConventional in Sterling HeightsConventional in Ann ArborConventional in LansingConventional in DearbornConventional in LivoniaConventional in TroyConventional in WestlandConventional in Farmington HillsConventional in FlintConventional in WyomingConventional in Rochester HillsConventional in SouthfieldConventional in KalamazooConventional in NoviConventional in TaylorConventional in Dearborn HeightsConventional in PontiacConventional in St. Clair ShoresConventional in Royal OakConventional in KentwoodConventional in Battle CreekConventional in PortageConventional in RosevilleConventional in East LansingConventional in SaginawConventional in MidlandConventional in Lincoln ParkConventional in MuskegonConventional in HollandConventional in EastpointeConventional in Bay CityConventional in JacksonConventional in SouthgateConventional in BurtonConventional in Oak ParkConventional in Port HuronConventional in Forest HillsConventional in Madison HeightsConventional in Allen ParkConventional in HamtramckConventional in Garden CityConventional in AllendaleConventional in InksterConventional in OkemosConventional in HoltConventional in WalkerConventional in Norton ShoresConventional in RomulusConventional in Auburn HillsConventional in WyandotteConventional in WaverlyConventional in BirminghamConventional in Mount PleasantConventional in MarquetteConventional in AdrianConventional in MonroeConventional in Ypsilanti

Frequently asked questions

Yes. Conventional loans are available statewide in Michigan through approved lenders, subject to county loan limits where they apply.

Often yes. Michigan State Housing Development Authority (MSHDA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Michigan.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.