Michigan Mortgage Overview
Michigan is the state of the Great Lakes.
It's largely surrounded by bodies of water which helps create its beauty and
wonder. Michigan has many first-time homebuyer programs available and the cost
of living is affordable. The average home costs $155,000, making it an
affordable place to live.
If you're thinking of buying a home in
Michigan, here are the home loan options:
Michigan FHA loans
You don't need perfect
credit to get a loan. The FHA loan requires just a 580 credit score, which is
almost 100 points lower than conventional loans. FHA loans require just 3.5
percent down and they even allow credit scores as low as 500 - 579 if you put
down 10 percent. FHA loans have flexible underwriting guidelines and require mortgage
insurance for the life of the loan.
Michigan VA loans
Veterans of the military
often don't have a lot of money saved to buy a home. The VA solves that problem
by providing 100 percent financing and flexible underwriting guidelines.
Veterans need just a 620 credit score and a decent debt ratio to qualify. VA
loans don't require mortgage insurance.
Michigan USDA loans
If living in less
populated areas don't bother you and you have low to moderate income, you may
be eligible for a USDA loan. This 100 percent financing loan makes it easy to
buy a home to live in (investment properties aren't allowed). You need just a
640 credit score and a 41 percent debt ratio to qualify.
Michigan conventional loans
are the loans everyone wants. They have low interest rates and only charge
Private Mortgage Insurance until you owe less than 80 percent of the home's
value. You need a 660+ credit score and a low debt ratio to qualify.
First-Time Homebuyer Programs in Michigan
If you're a first-time homebuyer, Michigan
has many first-time homebuyer programs to help:
MI Home Loan
interest loan provides up to $7,500 in down payment assistance to help you
buy your first home. You need a 640 credit score and the home must cost
$224,500 or less.
MI Home Loan Flex
This is another low
interest loan for MI buyers with more flexible guidelines, but you need a
660 credit score to qualify. Like the MI Home Loan the Flex loan provides up to
$7,500 in down payment assistance.
Michigan Mortgage Credit Certificate
income limits are within the regulations, you may deduct up to 20
percent of the annual interest paid on your mortgage. You may take the
credit for the entire term of the loan up to 30 years.