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Are You a Michigan First Time Home Buyer?

First Time Home Buyer Michigan 2014As a first time home buyer in Michigan, it's incredibly important for you to understand how the home buying process works. On top of understanding this, you'll also need to become familiar with your financing options to determine which first time home buyers program is best for you. A good mortgage lender will be able to thoroughly explain your financing options and help you choose the home buyers program that best suits your needs.

Purchasing a home for the first time can be very exciting but it can also turn into a nightmare scenario within an instant. The main catalyst for this nightmare scenario is not getting an accurate estimate on the costs associated with the home financing. This can lead to a misrepresentation of the housing payment as well.

Most first time home buyer programs will require some form of down payment but even if it isn't required, you will still have costs associated with the transaction. Depending on the property being purchased, these costs can total thousands of dollars.

Unfortunately, a lot of lenders use estimates for common costs like property taxes, homeowners insurance, and tax prorations. These estimates can be off by thousands and can cause two potential problem scenarios for first time buyers.

The first being if the lender estimates the costs too high and you don't have enough verified cash to close. This will lead to a denial letter and prevent you from buying the home you want for no good reason other then the lender being lazy and using estimates to do bad math.

The second scenario is if the lender estimates too low causing you to bring more money to close than you anticipated. This buying scenario is more common and can really make things hard on first time buyer loans.

The worst part about this second scenario is that you don't really find out if your lender used estimates until maybe a week before you close. Imagine finding out four days prior to close that you need an additional $1,000 or $2,000 dollars to close. This causes a lot of unnecessary stress about where you're going to come up with the extra money needed to buy your first home.

If you'd like to get pre-approved for the best first time home buyers program call (248) 674-6450 right now or simply click here. Also, for more information on first time home buyer programs in Michigan, keep reading.

The Best Michigan First Time Home Buyer Programs for 2020

USDA 100% Financing First Time Home Buyer Programs

  • Zero down
  • 600 minimum score
  • First, the home must be located in a rural area for this first time homebuyers program. Currently, most of Michigan is Rural outside of the big cities in the state. Check property eligibility for the state Michigan. Email [email protected] with the home address if you want us to check if the home is located in the right area.
  • Income restrictions apply. Check Michigan homebuyers income eligibility
  • Seller can pay 6% of purchase price toward homebuyer closing costs

Federal Housing Administration (FHA) First Time Home Buyer Programs

Good Neighbor Next Door First Time Home Buyer Program

  • 50% discount on homes in specific areas in the state of Michigan.
  • Must be law enforcement, police officer, teacher, firefighter, or emergency medical technician to qualify for this Michigan first time home buyer program
  • Lower down Payment Option available in HUD Participating Communities in Michigan.**

Home Possible Neighborhood Solution Program for Michigan First Time Homebuyers

  • You may qualify for this home buyer program is you are a Teacher, Law Enforcement Officer, Firefighter, Healthcare Worker, Nurse, Emergency Medical Technician (EMT), or Military Personnel
  • 620 Score
  • Reduced mortgage insurance
  • Flexible Qualification Guidelines

Veterans Home Loan Programs

  • Zero Down Mortgage Programs
  • Great fixed rate program with $0 Down for veterans or active military personnel in Army, Navy, Marine Corps, Air Force, Coast Guard, and National Guard. Reservists eligible with 6 years service.
  • 580 minimum credit score
  • No maximum loan limit
  • Seller can pay 4% of the home price toward homebuyer closing costs
  • Single family home-VA approved condo-townhome

FHA Streamline 203k Renovation Home Loan

  • Repairs which range from $5,000-$35,000+ may be included in loan amount.
  • Great first time homebuyers program to fix up foreclosures in Michigan.
  • Visit 203K Loan or call 248-674-6450 for more details on the Streamline 203k homebuyers program for Michigan

Down Payment Assistance

  • Michigan State Housing Development Authority or MSHDA allows up to $7,500 down payment assistance. Must be paired with an approved MSHDA lender for this first time homebuyers assistance program.
  • Community Development Block Grant Program provides 1st homebuyers grants in targeted Michigan communities.
  • Dream Makers Program Grant program which matches your contribution three-to-one up to maximum $5,000.
  • Military personnel (Active Duty, Reserve, National Guard, Veteran) are eligible for this program.
  • FHA, VA, USDA programs available
  • There are maximum income limitations.

Why Rent When You Can Buy a Home For Less? Take Our 45-Second Home Buyer Quiz To Find The Best Program For You!

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