Skip to content
Purchase Mortgage Loan
Get Pre-Approved

How to buy a home in Michigan

Quick answer

To buy a home in Michigan, most buyers use an FHA, conventional, VA or USDA loan, often combined with Michigan State Housing Development Authority (MSHDA) down payment assistance. With a typical home around $217,600, a 3.5% FHA down payment is about $7,616 and the estimated monthly payment is roughly $1,833 at a 7.18% rate.

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

Michigan is one of the more affordable places to buy in the U.S., which means many buyers can get in with a modest down payment and a payment that compares well to local rents. With a large, diverse market, prices vary widely between metro areas and smaller towns, so compare city-level options below. A household earning around $71,000 a year could comfortably afford a typical Michigan home under the 31% housing guideline.

What does a home cost in Michigan?

ItemMichigan estimate
Typical home value$217,600
3% down (conventional)$6,528
3.5% down (FHA)$7,616
20% down$43,520
Est. monthly payment (FHA, 3.5% down)$1,833
Household income to afford (31%)$71,000

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

What first-time home buyer programs does Michigan offer?

Michigan State Housing Development Authority (MSHDA) is Michigan's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

  • 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.

Check current terms at Michigan State Housing Development Authority (MSHDA). Many Michigan cities and counties also run their own down payment assistance.

What are the Michigan loan limits for 2026?

Michigan has 83 counties; 0 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

CountyConformingFHA
Wayne County$832,750$541,287
Oakland County$832,750$541,287
Macomb County$832,750$541,287
Kent County$832,750$541,287
Genesee County$832,750$541,287
Washtenaw County$832,750$541,287
Ottawa County$832,750$541,287
Ingham County$832,750$541,287
Kalamazoo County$832,750$541,287
Livingston County$832,750$541,287
Saginaw County$832,750$541,287
Muskegon County$832,750$541,287

See all Michigan county loan limits → VA loans have no limit for borrowers with full entitlement.

Which Michigan down payment assistance programs are verified?

How much house can I afford in Michigan?

Use Michigan's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in Michigan.

How do property taxes affect buying in Michigan?

Homeowners in Michigan pay a median of $2,795 a year in property taxes — an effective rate of about 1.28% of the median home value, above the national average (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in Michigan?

  • Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
  • FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
  • VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
  • USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
  • Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
  • First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in Michigan cities

Browse every city page →

Michigan home buying FAQs

On a typical Michigan home of about $217,600, a 3.5% FHA down payment is roughly $7,616 and a 3% conventional down payment about $6,528, plus closing costs of 2%–5% of the loan.

Yes. Michigan State Housing Development Authority (MSHDA) offers programs including MI Home Loan, MI 10K DPA. Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $832,750 in most Michigan counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $541,287 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

Get matched with Michigan purchase lenders

Answer a few quick questions and get matched with purchase mortgage lenders in your area. Free, and it won't affect your credit score.

Get My Matches

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.