Michigan conventional mortgage loans allow first time home buyers to purchase their new home with only a 3% down payment. If you have owned a home in the past 3 years, the minimum down payment will be 5%. Conventional loans are the most common type of mortgage. Typically you will need a good credit history and a lower debt to income ratio.
- 3% to 5% minimum down payment. Can be a gift from an immediate family member.
- Seller can pay up to 3% of the sale price towards your closing costs.
- Private Mortgage insurance (PMI) varies greatly depending on credit score and down payment.
- Conventional loan limits are $548,250.
- No geographic restrictions.
General Qualifying Requirements
- Credit score minimum of 620. The lower the credit score the higher your rate and/or fees will be.
- No previous mortgage loan late payment in the past 24 months.
- No foreclosure in the past 7 years. Must have rebuilt credit.
- No bankruptcies in the past 4 years. Must have rebuilt credit.
- All court ordered judgments MUST be satisfied or have a satisfactory payment history.
- Condominiums must meet Fannie Mae or Freddie Mac requirements.