Home Financing
Options in Michigan.
There is more than one way to finance a home.
FHA, Conventional, VA, USDA, MSHDA and down payment assistance programs can create very different paths to homeownership.
We help buyers understand the options, ask better questions, connect with qualified lending professionals and build a strategy around the home they want to purchase.
You may have more financing options than you realize.
One of the biggest misconceptions about buying a home is that every buyer needs the same credit profile, the same down payment or the same type of mortgage.
Financing is more nuanced than that. The right option depends on factors such as eligibility, income, available funds, property type, monthly-payment goals and your long-term plans.
Don't begin by asking, “Which loan is best?” Begin by asking, “Which financing strategy makes the most sense for our situation?”
Common ways to finance a home in Michigan.
Each program solves a different problem. Explore the fundamentals below, then visit the individual guides for a deeper look.
FHA Loans
Government-insured financing that can provide a lower down-payment path for eligible buyers and may offer more flexible qualification guidelines than some conventional options.
Explore FHA Loans →Conventional Loans
A widely used mortgage option with several down-payment structures. Depending on the buyer and program, putting 20% down is not always required.
Explore Conventional →VA Home Loans
A powerful home-financing benefit available to eligible veterans, service members and certain surviving spouses, with significant financing advantages for qualified borrowers.
Explore VA Loans →USDA / Rural Development
Financing designed for eligible properties and households in qualifying areas. Some USDA financing can offer a no-down-payment path for eligible borrowers.
Explore USDA →MSHDA Programs
Michigan State Housing Development Authority programs may provide eligible Michigan homebuyers with specialized mortgage and down-payment-assistance options.
Explore MSHDA →Down Payment Assistance
Assistance programs may help eligible buyers with some of the upfront costs of purchasing a home. Terms, availability and repayment requirements vary by program.
Explore Assistance →What is MSHDA?
Michigan buyers may have access to programs specifically designed to make homeownership more attainable.
The Michigan State Housing Development Authority offers homeownership programs for qualifying buyers, including mortgage and down-payment-assistance options.
Eligibility and program terms can change, which is why we recommend verifying current requirements with an approved participating lender rather than relying on old information found online.
Learn About MSHDA Programs →The lowest down payment isn't automatically the best deal.
A smart comparison looks at the entire financing picture.
Cash to Close
Down payment, closing costs, prepaid expenses and other transaction costs.
Monthly Payment
Principal, interest, taxes, insurance and applicable mortgage insurance or program fees.
Property Requirements
Different financing programs can have different appraisal and property-condition considerations.
Long-Term Cost
Consider how the financing structure may affect the cost of owning the home over time.
Eligibility
Income, credit, military eligibility, location and other factors can determine which programs are available.
Your Next Move
How long you expect to own the property and your broader financial goals should be part of the conversation.
How much money do you actually need to buy a home?
The down payment is only one part of the equation.
The amount applied toward the purchase price depends on the loan and your financing strategy.
Loan, title and other transaction-related costs should be considered before making an offer.
Taxes, homeowners insurance and escrow funding may be collected as part of closing.
Buyers should also prepare for appropriate due-diligence and financing-related expenses.
Financing should come before falling in love with a house.
Start With Your Goals
Discuss your timeline, priorities, target areas and what a comfortable purchase looks like.
Connect With a Qualified Lender
Review financing options, qualification requirements and estimated costs with a mortgage professional.
Understand the Numbers
Look at estimated cash to close and monthly payment, not simply the maximum amount you may qualify to borrow.
Get Preapproved
Complete the appropriate lender process before seriously shopping for homes.
Shop With a Strategy
Once the financing framework is established, we can focus the home search around the right properties and price range.
Financing FAQ.
Do we need 20% down to buy a home?
Not necessarily. Some financing programs allow eligible borrowers to purchase with significantly less than 20% down. The appropriate amount depends on the program, qualification and overall financing strategy.
Is FHA only for first-time homebuyers?
No. FHA financing is not exclusively for first-time buyers. Eligibility and loan qualification should be reviewed with a qualified lender.
Can down payment assistance cover all of our costs?
It depends on the program and transaction. Assistance programs have specific limits, eligibility requirements and permitted uses. Buyers should also understand whether assistance is a grant, loan, deferred loan or another structure.
Should we talk to a Realtor or lender first?
Both professionals play different roles. We can begin by discussing your home-buying goals and then coordinate with a qualified lender so the financing strategy and real-estate strategy work together.
Does a preapproval guarantee that we will receive the loan?
No. A preapproval is not a final loan approval. Financing remains subject to lender requirements, underwriting, property review and other applicable conditions.
Avila Home Group provides real-estate information and educational resources and is not acting as a mortgage lender or loan underwriter. Loan programs, interest rates, assistance programs, eligibility requirements, limits, fees and terms are subject to change. Buyers should verify current program information and obtain financing advice directly from an appropriately licensed or qualified mortgage professional or participating lender.
Start with a plan.
Then find the home.
Whether you're preparing for your first purchase or simply trying to understand your financing options, our team can help you build a clearer path forward.