Different Types of First Time Home Buyer Loans In Michigan
First-time home buyers can access several government-designed home loan options once they meet the eligibility requirements.
Priority 1 Lending's licensed and experienced mortgage experts guide you to shop for the best first-time home buyer loan option in Michigan. From studying your creditworthiness to comparing different loan products, we help you own a home with minimum hassles or frustration.
Conventional 97– An option to borrow 97% of the home value with a 3% down payment. This is an affordable option that requires a credit score of a minimum of 620.
FHA Loan– Insured by the Federal Housing Administration, an FHA loan gives you the option to borrow 96.5% of the home value with a 580 minimum credit score.
VA Loan– Accessible only for U.S Military Members with a minimum credit score range of 580 to 660. No down payment is required, only a funding fee of 1.4% to 3.6% of the total value.
USDA Loan– Comes with a zero-down payment option and requires a credit score of a minimum of 640 for a USDA Loan. The home must be in a qualified area to avail of eligibility for the first-buyer home program.
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Frequently Asked Questions
What qualifies as a first-time home buyer in Michigan?
A first-time home buyer in Michigan is someone who never had a single-family residence under his or her name in the last 3 years.
How much do first-time home buyers have to put down in Michigan?
Michigan first-time home buyers are required to pay at least 3% down for the MI Home Loan. The good news is MSHDA offers financial help with the down payment after you meet their basic lending criteria.
What should the minimum credit score do to buy a house in Michigan?
MI first-time home buyers need a credit score of at least 640 to qualify for home loans. The figure goes a notch higher at 660 if applying for multiple-section manufactured homes.
Does Michigan have a first time home buying credit?
Yes. Michigan allows first time homebuyers to claim a federal tax credit equal to 20% of their annual mortgage interest, up to $2,000 a year. However, it is applicable if you are eligible for the Mortgage Credit Certificate ( MCC) program.