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Buying a home

Data from November 2026

Buying a home in Michigan

A typical home in Michigan is worth $231,600 (Average 2020–2024). The FHA limit for one unit is $541,287 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$231,600
median value, Average 2020–2024
30% less than the U.S.
FHA limit
$541,287
one unit, by county
All of Michigan uses the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$8,106
3.5% of a $231,600 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $231,600 home, the typical value in Michigan. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $231,600 home in Michigan

  1. FHA Program rule

    Minimum down3.5%

    In dollars$8,106

    Per month$1,514

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$6,948

    Per month$1,522

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,569

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,569

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$34,740

    Per month$1,334

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

In 2026 data, every county in Michigan uses the national FHA floor ($541,287) for one unit. The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Michigan programs for buyers

2 verified programs that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • MI 10K DPA Loan

    Verified November 5, 2026

    Michigan state agency loan of up to $10,000, with no interest and no monthly payments, for the down payment, closing costs and prepaid expenses; it goes with MSHDA's MI Home Loan mortgage and is repaid in certain cases, such as when you pay off the first mortgage, sell or refinance the home, or no longer live in it

    • Deferred
    See details

  • Mortgage Credit Certificate (MCC)

    Verified November 5, 2026

    Michigan state authority certificate that lets you take 20% of the interest you pay each year on your mortgage off your federal taxes, for the life of the loan; you apply with an approved lender before you buy

    • Tax credit
    See details

What the state publishes

Michigan rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Michigan

Exemptions and caps

  • Principal Residence Exemption (PRE) from school operating tax

    If you own and occupy the home as your principal residence, you may file an affidavit with your local tax unit (by June 1 for the summer levy or November 1 for the winter levy) and the home is exempt from the school district's operating tax to the extent the school code provides.

    MCL 211.7cc(1)-(2) · Michigan Legislature (Michigan Compiled Laws) · Verified October 23, 2026

  • Homestead Property Tax Credit (Form MI-1040CR)

    You may claim this credit if your homestead is in Michigan, you lived in Michigan at least six months of 2025, and you own it (with taxes levied in 2025) or paid rent. For 2025 you cannot claim it if total household resources are over $71,500 or the taxable value exceeds $165,400. It is filed with your MI-1040 by April 15, 2026; the last deadline for the 2025 credit is April 15, 2030. These are 2025 figures. The instructions ask for your full nine-digit Social Security number.

    Michigan Department of Treasury (2025 MI-1040CR instructions) · Verified October 31, 2026

  • Full exemption for disabled veterans and their surviving spouse

    A home used and owned as a homestead by a disabled veteran is exempt from the collection of property taxes. A Michigan-resident veteran qualifies if the VA found a permanent and total service disability paid at the 100% rate, granted specially adapted housing assistance, or rated the veteran individually unemployable. The surviving spouse keeps the exemption while not remarried. You apply to the local assessor after January 1 and before December 31 of the year.

    MCL 211.7b · Michigan Legislature (Michigan Compiled Laws) · Verified October 31, 2026

When the sale is recorded

  • State real estate transfer tax

    The State charges $3.75 for each $500 (or fraction) of the total value of the property transferred, paid by the seller. The county adds 55 cents per $500 (up to 75 cents in counties of 2 million people or more), also paid by the seller.

    MCL 207.525(1); MCL 207.523(2) · Michigan Legislature (Michigan Compiled Laws) · Verified October 23, 2026

Your next steps

Where to go next in Michigan

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Michigan calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    59 HUD-approved agencies help you prepare to buy; 17 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Michigan?

For a $231,600 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $8,106 and the conventional minimum (3%) is $6,948. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Michigan?

No. In 2026 data, every county in Michigan uses the national FHA floor ($541,287) for one unit.

What is the conforming loan limit in Michigan?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Michigan: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Michigan?

With $231,600, the FHA minimum down payment ($8,106) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,514 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Michigan?

We have verified 2 state programs in Michigan that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.