How Much Do You Need for a Down Payment in Michigan?
If you’re thinking about buying your first home in Michigan, one of the biggest questions on your mind is probably:
“How much money do I need to save for the down payment?”
It’s a fair question — and the internet can be confusing. Some sites make it sound like you need 20% down, or tens of thousands of dollars saved up just to get started.
Here’s the good news: you can buy a home in Michigan with way less than you think
Let’s break it all down in plain English.
Do You Really Need 20% Down?
Nope. That’s one of the biggest myths in homebuying.
Yes, putting 20% down can help you avoid private mortgage insurance (PMI), but it’s not required — especially for first-time buyers.
Typical Down Payment Amounts by Loan Type
Here’s what you can expect for the most common types of mortgages:
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FHA Loans – 3.5% down
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Conventional Loans – As low as 3% down for first-time buyers
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VA Loans – 0% down (for eligible veterans and service members)
So if you’re looking at a $250,000 home in Michigan, here’s what that might look like:
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3% down = $7,500
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3.5% down = $8,750
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5% down = $12,500
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0% down = $0
We’ll help you figure out what fits your budget — and your comfort zone.
But Don’t Forget About Closing Costs
In addition to your down payment, you’ll also need to budget for closing costs, which usually run about 2% to 5% of the home price. These cover things like:
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Appraisal
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Title fees
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Taxes
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Homeowner’s insurance
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Lender fees
But here’s the cool part: in many cases, we can help you negotiate with the seller to cover part (or all!) of your closing costs.
Ready to have a conversation?
Give us a ring at 616-465-5725!
Need more convincing? That’s OK. Check out our Google reviews for real stories from clients we’ve helped.
(Let’s continue…) Can You Use Gift Funds or Down Payment Assistance?
Yes and yes.
If a family member wants to help with your down payment, most loan programs allow gift funds. We’ll help document it the right way to keep everything compliant and smooth.
And if you qualify, there are down payment assistance programs available in Michigan that can offer grants or low-interest loans to help cover your upfront costs.
You might be surprised how many options are out there — especially for first-time buyers or those relocating to specific communities.
Should You Wait and Save More?
This is a question we hear a lot. And here’s our honest take:
If you’re ready to buy now — and you qualify for a solid loan with 3% or 5% down — it might make more sense to buy now than wait a year or two trying to save up 20%.
Home prices and interest rates can change quickly. Waiting could actually cost more in the long run.
We can run the numbers together and help you see the pros and cons of buying now vs. later, based on your goals and budget.
Claim your FREE appraisal reimbursement from JPAL!
Simply fill out this form and when you finance a home with us, we’ll reimburse the cost of your appraisal (up to $600) at closing.** We’ll respond within 30 minutes of filling out the form.
Trusted by Your Neighbors Across the State of Michigan
- Over 30 years in combined banking and mortgage experience
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- Pioneers of the “Unbeatable Mortgage Experience”
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What Your Neighbors Say
“Jeremy helped us with the purchase of our very first home. He was extremely helpful throughout the entire process. He answered every question we had – big or small – as if it was the most important thing he could be doing in that moment. He made us feel very cared for and was extremely efficient at giving us updates along the way. Do not question your choice to work with Jeremy! We are so glad we did.” -Justine L.
★★★★★
“Adam Leavesley was referred to me by a trusted friend, and he came in clutch with the right advice and help to make getting approved, getting the loan and purchasing this home all possible in a very short period of time. During the whole process I felt comfortable and secure knowing that there was a great team helping my family out in a real time of need. That meant the world! Thanks to everyone at JPAL, Peace and Love.” -Brandon J.
★★★★★
“JPAL Mortgage was the most wonderful experience we have ever had in purchasing a home! They constantly kept us apprised of the progress in securing the loan and working a miracle in closing on our home in a 2 week time period. Jeremy Pins especially, was a joy to work with. Nothing was impossible for him to accomplish. Jeremy’s knowledge, experience, guidance, and advice on the direction we should consider in a very difficult financial climate was absolutely amazing! If/when we plan to purchase another property, JPAL will be the only company we will consider. We will recommend to anyone in the market to purchase property, JPAL are true ‘miracle workers’!” -Michael S.
★★★★★
“Adam is AMAZING! The “ old style” service was fantastic! Adam’s enthusiasm is infectious, and the genuineness is evident. Adam made our mortgage/finance experience incredibly easy and fast. Adam will help you every step of the process with extreme detail along with his expertise will ensure you will get the best results with someone you can trust, like Adam.” -Janae A.
★★★★★
JPAL Mortgage is proudly based in Michigan, where its two owners were born and raised! We love this state and have traveled it far and wide. It’s a passion of ours to help make a smooth landing here in Michigan! Learn more about the team at JPAL
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JPAL Mortgage – Your best friend in home finance.
**All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. Appraisal reimbursement available for loans closed with JPAL Mortgage LLC and applied at closing. NMLS ID #2189752 | Equal Housing Opportunity.