Michigan residents benefit from low rate mortgage offers with discount loans for cash out refinancing, second mortgages, home purchase and home improvement loans for all types of borrowers. Michigan lenders continue to advertise low rate incentives for mortgages in Michigan home-buyers. We help you shop for unique down-payment assistance for MI home buyers and mortgage refinancing programs that allow borrowers to consolidate credit cards and high rate debt into a fixed rate 1st or 2nd mortgage.

Find Low Rate First Time Home Loans from Top Michigan Mortgage Lenders

Consider home mortgage loans for people with less than perfect credit in an effort to rebuild their credit history. Get approved today while Michigan mortgage rates are so affordable!

Local Underwriting Tips: “Carrying high balances on your credit cards will lower your credit scores. I recommend paying them down as much as possible a month prior to applying for a loan. This way you will have a credit score that should aid you in getting the best rate.”

– Maria Addington , Michigan Sr. Loan officer with Quick Home Loans

2nd Mortgage and Equity Loan Volumes Rise Across Michigan:

Michigan Continues to show areas with real estate appreciation. Many Michigan cities like Detroit, Grand Rapids and Lansing continue to see slightly declining home values. Get set up with a home equity line of credit account while the property values are at their peak level.

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How to Get a Michigan First Time Home Buyer Loan

Michigan’s first-time home buyer loans, primarily administered by the Michigan State Housing Development Authority (MSHDA), provide accessible financing options for those entering the housing market in 2025. With median home prices around $250,000 and mortgage rates stabilizing near 6.5-7%, these programs offer low down payments, competitive interest rates, and down payment assistance (DPA) to make ownership feasible amid economic pressures. It’s designed for buyers who haven’t owned a home in three years, they include government-backed FHA, VA, or USDA loans paired with MSHDA products like the MI Home Loan. In 2025, enhanced programs target first-generation buyers, reflecting state efforts to boost affordability as inventory improves post-2024 slowdowns.

To qualify for low rate Michigan mortgages, meet key eligibility criteria: household income must not exceed county-specific limits (e.g., $100,000-$140,000 for most areas, based on 80-120% of area median income or AMI); minimum credit score of 640 (or 620 for some FHA options); debt-to-income ratio under 45%; and completion of a MSHDA-approved homebuyer education course. Purchase price caps apply, typically $224,500-$450,000 depending on location. Non-first-time buyers in targeted revitalization areas may also qualify. Gifts or DPA can cover the 3-3.5% down payment for FHA-backed loans.

According to the RefiGuide, Michigan home buyer programs are generous and easier to qualify for then compare to most other states.

The process starts with education: Enroll in a free or low-cost homebuyer class via MSHDA’s locator tool, covering budgeting, credit, and closing. Next, find an MSHDA-participating lender—over 100 banks and credit unions statewide—for pre-approval, which strengthens offers in competitive markets. Gather documents like tax returns, pay stubs, bank statements, and ID. Apply for the loan through the lender, selecting programs like MI Home Loan (fixed-rate with DPA eligibility) or FHA 203(k) for rehabs. If seeking DPA, submit simultaneously; funds are disbursed at closing. Appraisal and inspection follow, with closing in 30-60 days. In 2025, digital applications via lenders streamline this, but expect fees like 1% origination.

Challenges include mortgage insurance premiums (MIP) for low-down-payment loans and varying DPA availability—funds are first-come, first-served. Work with a housing counselor for personalized guidance. Success stories abound: In 2024, MSHDA assisted over 5,000 buyers, a trend continuing into 2025 with expanded pilots.

Top 5 Down-Payment Assistance Programs in Michigan

Ranked by maximum assistance amount, statewide availability, and popularity in 2025 (popular Michigan first time home buyer programs):

MSHDA First-Generation Down Payment Assistance: Up to $25,000 forgivable loan for first-gen buyers (no parental homeownership); income ≤120% AMI; pairs with MI Home Loan. URL: https://www.michigan.gov/mshda/pathway-to-housing/firstgendpa
HomeBoost Down Payment Assistance: Up to $25,000 (or 20% of price) for first-time, first-gen buyers; income ≤120% AMI; requires $500 contribution and education. Offered via credit unions like Michigan First. URL: https://michiganfirst.com/Education/MoneyWise-Blog/Homebuying/Unlock-Your-Home-Goals-with-HomeBoost-Coming-Soon
Detroit Down Payment Assistance: Up to $25,000 grant for qualified families in Detroit; covers down payment and closing costs; income and credit requirements apply. URL: https://detroitmi.gov/departments/housing-and-revitalization-department/homebuyers/detroit-down-payment-assistance-program
MI 10K DPA Loan: Up to $10,000 interest-free loan statewide; forgivable after 5-10 years; for MI Home Loan users with 640+ credit and education. URL: https://www.michigan.gov/mshda/pathway-to-housing/mi-10k-dpa-loan
Grand Rapids Homebuyer Assistance Fund: Up to $7,500 for low-moderate income buyers in Grand Rapids; usable for down payment/closing; requires education and counseling. URL: https://www.grandrapidsmi.gov/Government/Programs-and-Initiatives/Homebuyer-Assistance-Fund

Attention Great Lake Homeowners:

For a limited time, Michigan homeowners – Get a Free Loan Consultation

* Offer available for residents living in Michigan and Illinois who apply online for a second mortgage, home equity loan or line of credit. There is no obligation to get a loan, but submitting a loan request form is required for free home valuation offer.

Free Mortgage Quote for Michigan Home Buyers

Check out our niches for self-employed borrowers like no income verification, home improvement financing, 100% cltv and low fico programs. Nationwide offers Michigan residents free 2nd mortgage quotes. There is no obligation and the form is simple to complete. Relax at home comparing interest rates so that you can find the perfect second mortgage or refinance loan meeting your needs.

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Michigan State Loan Updates

With home sales plummeting in the surrounding the Great Lakes regions, Michigan homeowners continue to pray that the Federal Reserve cuts interest rates again. It may be your last chance to refinance your adjustable rate mortgage or take out a fixed second mortgage at a competitive home equity rates. Michigan Home Equity Loan Rates
Are your Home Equity Credit Line Interest Rates Rising? Put an end to monthly payment increases with a fixed rate loan.

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