Michigan First-Time Homebuyer Packages | The Lenders Community

MI Home Loan

Program Description:

Available to first-time homebuyers who have not owned a home in the previous three years statewide, and repeat homebuyers in targeted areas.
Household income limits apply and can vary depending on family size and property location.
Sales Price limit – $224,500 statewide.
A minimum credit score of 640 is required or 660 for multiple-section manufactured homes.

Down Payment Assistance available

Getting Started

Housing counseling agencies – free or low-cost counseling services for buying, renting, defaults, foreclosures, credit issues and reverse mortgages
Predatory lending – beware if you’re buying or refinancing your home; don’t become a victim of unfair lending practices

Buying a Home

Owning and Maintaining Your Home

FHA Loans – FHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
Conventional Loans – Conventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
USDA Loans – USDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.