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 absolutely not required — especially for first-time buyers.
NEW! Only 1% Down Payment!
Did you know JPAL Mortgage now offers a 1% down payment program for qualified buyers?
That means if you’re buying a $200,000 home, your down payment could be just $2,000.*
With our unique 1% down conventional loans, you contribute 1% and your lender pays an extra 2%, totaling 3% down at closing. Additionally, gift funds and down payment assistance can be used to cover your entire down payment. This is an excellent way to achieve homeownership without straining your finances.
Let’s see if you qualify — or call us at 616-465-5725. Your dream home might be closer than you think!
*Program offered by United Wholesale Mortgage, a current wholesaler of JPAL Mortgage. The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.625% and 97% loan-to-value (LTV) is $1,370.62. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 06/10/25. United Wholesale Mortgage pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.
✅ 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.
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.
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.
Why Talk to JPAL Mortgage First?
We’re a small, local team — not a call center. We specialize in working with:
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First-time buyers
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People relocating to Michigan
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Folks who want clear answers, fast responses, and friendly advice
Whether you’ve got $30,000 saved or zero, we’ll walk you through every option, every program, and every next step — with no pressure and no jargon.
Let’s Find Out What You Qualify For
Want to know how much you need to save — and how close you are to being ready?
Book a free call with JPAL Mortgage here
We’ll look at your numbers, explain your options, and get you on the path to homeownership in Michigan.
For our full downloadable PDF on “What to Expect” during the mortgage process, grab it here!
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!
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. NMLS ID #2189752 | Equal Housing Opportunity