Will The Michigan First Time Home Buyer Programs Allow Buyers to Purchase a Home With Zero Down?

Zero Down Loan Programs For First Time Buyers in Michigan

The Michigan first time home buyer programs have seen a few changes recently that can affect your pocketbook. Rates have increased by almost one full percentage point in the last twelve months. This has many first time home buyers perplexed about whether it makes more sense to rent a house now that they have less purchasing power.

The housing market is currently filled with way more buyers than homes for sale which creates serious competition for first timers. This low inventory drives a sellers market and it makes creating a good offer super important for buyers that are serious about owning a home.

Is It Better To Buy a Home Or Should I Rent?

These dramatic market changes could scare prospective buyers into thinking a rental makes better financial sense. The problem with this line of thinking is that rental rates have also gone up due to inflation. In most cases, owning a home is still just as affordable as renting a home when you compare monthly payments. Keep in mind that it does depend on which city you want to live in.

Also, even though rates have increased, they are still far below 5 % which is a historically low interest. In fact, we are still seeing rates below 4% on 15 year and 30 year fixed loans.

When it comes down to the numbers and solid mathematical data, owning a house will be the better financial choice until rates climb well above 6%. This is because the monthly payment for owning a home is almost always at or below the amount to rent the same home. Plus, with each mortgage payment you are building equity for yourself instead of the landlord with a rent payment.

You May Need More Cash Up Front To Buy But Its a Far Better Investment

However, buying a house typically requires more cash up front than renting which could create a barrier for entry for many Michigan first time home buyers. When renting you will typically need first months rent and a security deposit which can equal several thousand dollars depending on the rent.

A home purchase will require a minimum 3% down payment with good credit and 3.5% if you have marginal credit. However, this up front investment will pay a return as each mortgage payment you make builds a little more equity. 

Most home buyers can recoup their initial investment within a couple years. Currently homes are appreciating by over 3% per year which will help accelerate the return on investment.

A Gift May Pave Your Way To Homeownership

One way to get around the up-front costs of a home purchase would be to get a gift for your down payment. While this choice isn’t offered to every person, we’ve helped lots of first time buyers obtain their dream home by utilizing gift funds from a friend or relative for the down payment and closing costs.

Another popular strategy for finding down payment funds is to use an income tax return. Beyond that, there are a few reliable grant programs that can help.

Michigan Mortgage Solutions Has a Full Team of First Time Home Buying Experts

If you are a Michigan first time home buyer looking for a local mortgage lender, call Michigan Mortgage Solutions at (248) 674-6450. We carry an A+ score with the Better Business Bureau and we have hundreds of current 5 Star Reviews on Google, Yahoo, Yelp, and several other online business directories

Nevertheless, if you happen to have any questions relating to Michigan first time home buyer programs or FHA loans, do not hesitate calling (248) 674-6450 and we will get you on your way to owning your first home.

Your 5-Star First Time Buyer Experience Includes…

  • A no-cost/no-obligation pre-approval…
  • Find out how much you can borrow…
  • Start house shopping today…
  • Answers to all your questions 24/7…
  • Access to the lowest rates possible…
  • We help buyers with credit issues…

Call (248) 674-6450 For an Instant Pre Approval

Michigan Mortgage Solutions is Dedicated to Making Your Home Purchase as Easy & Stress Free as Possible! Take our 45 second First Time Buyer Quiz to find out what mortgage program will work best for you. Find out if you can qualify for a $0 down program today!

Cheryl S
Cheryl S
05/01/2024
Jason was phenomenal to work with during my mortgage process. He guided me with ease from beginning to end . He had patience when I had questions and explained everything so clearly. I am thankful to Jason and the entire team for making this a pretty stressful free experience!! New Year, New Home! Thanks Jason!!
miss renee
miss renee
03/01/2024
Trevor was very knowledgeable and his expertise was Super helpful in putting me in the right direction!
Jillian Mitchell
Jillian Mitchell
17/11/2023
Great experience all around. Jason, Trevor and Yolanda are a great team and always are reassuring and helpful.
Reel Champs
Reel Champs
23/10/2023
Jason and the Michigan Mortgage solutions team was amazing. I ran to them out of desperation because I had a terrible experience with a bigger mortgage company. It was the best decision of my life and Jason worked with me seamlessly and got my family into our dream house in less than 45 days. Highly recommend them as your FIRST STOP, you won’t regret it.
Michael Cordell
Michael Cordell
17/10/2023
I had a wonderful experience. The communication at every step along the process was exceptional. My contact went above and beyond and answered my questions at all times. Thank you,
Sanya Ross
Sanya Ross
29/09/2023
Jason was knowledgeable and always available. Made me feel at ease with such a huge purchase, I asked tons of questions and he never made me feel like it was a problem. I appreciate everything he did to make my first home purchase a success and I will refer all my friends and family to Michigan mortgage solutions!! Thank you again!
Jack Condrige
Jack Condrige
26/09/2023
Great experience. Very personal service.
Kyla Wilberding
Kyla Wilberding
20/09/2023
Can't say enough good things about Jason and his team. They made my first home buying experience quick, easy, and stress free. They communicated flawlessly and explained every step of the process, would recommend to anyone! Closed on my house in less than a month.
Tony Pliva
Tony Pliva
25/08/2023
Worked with Jason and his team for about a year before we found a home we wanted. The whole process was smooth and easy. Definitely recommend to anyone getting a mortgage!
Michigan Mortgage Solutions

Michigan Mortgage Solutions

Michigan Mortgage Solutions offers a variety of mortgage programs to suit your needs. FHA Loans, Conventional Loans and VA loans are just some examples. For experienced homeowners looking for cash out or refinancing options there is help available as well with the offer of an FHA streamline loan option that can be completed in 10 days! Michigan Mortgage Solution has something to offer every customer; whether you’re a first time home buyer or seasoned veteran our team will find the right Michigan mortgage solution for you!

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