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First Time Home Buyer in MichiganIf you are looking to buy your 1st home, you've come to
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Today’s Rates for First Time Homebuyers in Michigan

Sunday, October 22, 2017

Mortgage rates are at 4.10% for the 30 year fixed loan program and at 3.25% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 3.33%. Check out FHA and VA rates as well if you are doing low or no down payments.

Michigan First Time Home Buyer Checklist

  1. Research loan programs that may work for you. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
  2. Know your FICO score. It should fall somewhere above 600, however a few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once every year, you're able to request a free credit report from the three major credit bureaus. 
  3. Ask for interest rate quotes from different lenders in Michigan. Choose a lender who both provides a great offer and carries a high rating from the Better Business Bureau.
  4. Get pre-approved. Once you've gotten comfortable with a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
  5. Determine your optimal budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the loan amount provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
  6. Start shopping for a home. While you're at it, avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Michigan FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Michigan page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Michigan home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Ann Arbor, Lansing, and Grand Rapids are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 
Local Cities

user suit Lenders in: Michigan.

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