Your down payment depends on your loan type, credit profile, and personal goals. Most buyers put down:

• 3–5% with Conventional
• 3.5% with FHA
• 0% with VA
• 3–5% with MSHDA assistance (program-dependent)

A larger down payment may lower your monthly payment, but it’s not required for most buyers—especially first-time buyers.

Michigan offers programs designed to help reduce upfront costs. These programs can make homeownership accessible even if saving a large down payment has been challenging.

Common options include:

MSHDA Down Payment Assistance

Michigan State Housing Development Authority programs may offer:

• Up to $10,000+ toward down payment and closing costs
• Repayable or forgivable structures, depending on the program
• Eligibility based on income, credit score, and purchase price limits
• Availability only in approved cities and counties

These programs can be an excellent fit for first-time buyers, returning buyers, or buyers purchasing in targeted areas.

Other DPA Sources

Depending on your situation, you may also qualify for:

• Employer-based housing assistance
• Community development grants
• Federal or local incentive programs
• Lender-specific credit programs

Your lender will help determine which programs you qualify for, and we help you understand how each option impacts your cash-to-close and monthly payment.

We help you understand which down payment amount and/or down payment assistance program makes the most sense—not just what your lender says you can afford, but what aligns with your financial comfort level.

Closing costs typically range 2%–5% of the purchase price and include the services needed to finalize your mortgage. These may include:

Loan Origination Fees

Charged by your lender to process your mortgage application.

Appraisal Fee

A third-party valuation confirming the home’s market value.

Credit Report, Underwriting & Administrative Fees

Costs associated with verifying your financials and preparing your loan file.

Title Company Fees

Cover title search, insurance, settlement services, and document preparation.

Recording & Transfer Fees

Paid to your county or municipality to legally record the transaction.

Prepaid Items (Taxes, Insurance & Interest)

Funds collected upfront to set up your escrow account.

Lenders often require an escrow account to manage property taxes and homeowners insurance.

At closing, you may prepay:

• Several months of property taxes
• The first year of homeowners insurance
• Daily interest from closing through the start of your first payment

This ensures your payments stay predictable and on time throughout the year.

Most loan programs allow sellers to cover a portion of your closing costs and prepaids—sometimes up to 6% of the purchase price.

We’ll help you structure your offer to maximize these concessions when the market allows.

Michigan’s property tax system is unique and often misunderstood. The most important thing to know:

The taxes listed online are usually NOT what you will pay after you buy the home.

When a property transfers ownership, Michigan law allows the taxable value to “uncap,” meaning the new owner may pay significantly higher taxes than the previous owner.

Why taxes change after a home sale:

• Taxable value is capped at a limited annual increase until the property is sold
• When ownership transfers, the taxable value resets to approximately 50% of the home’s true market value – this is also known as the State Equalized Value (SEV).
• This can result in hundreds—or thousands—of dollars in additional annual taxes

Use the State of Michigan Property Tax Estimator

Before making an offer, we recommend reviewing the estimated taxes for your purchase price here on the state’s tax estimator.

IMPORTANT: When entering the SEV, use 50% of your purchase price. For example, if you’re planning on purchase a home at $250,000, enter $125,000 as the SEV.

https://www.michigan.gov/taxes/property/estimator

This tool uses your specific city, county, school district, and proposed purchase price to estimate your future taxes—not the seller’s. 

We review tax estimates with every buyer to help you understand your monthly payment after taxable value uncapping. No surprises. No guesswork.

Inspections protect your investment by identifying issues early. These fees are typically paid at the time of service and are separate from closing costs.

Common inspection costs in Metro Detroit include:

• General Home Inspection: $300–$1,000
• Radon Testing: $100–$150
• Sewer Scope: $150–$300
• Chimney Inspection: $100–$200
• Lead-Based Paint Testing (if needed): varies

Homeowners insurance varies depending on the home’s age, location, claims history, and coverage level.

Additional optional coverages include:

• Sewer backup (highly recommended for homes with basements)
• Additional liability
• Flood insurance (if required or recommended)
• Extended replacement coverage

Your lender will require proof of coverage prior to closing.

If you’re purchasing in an association-managed community, monthly dues may include:

• Exterior maintenance
• Landscaping and snow removal
• Water or utilities
• Community amenities

These fees should be included in your total monthly housing budget.

We help you understand which costs are fixed, which are flexible, and which are negotiable—so you can build a budget that works with your goals.

Additional costs to keep in mind:

• Movers or truck rental
• Utility deposits
• Cleaning services
• Lock changes
• Immediate maintenance and repairs

Planning ahead makes moving day smoother.

Your total cash-to-close includes:

• Down payment
• Closing costs
• Prepaid taxes and insurance
• Inspection fees
• Miscellaneous moving and setup costs

By understanding each component early in the process, you can make informed decisions and move into the next stage of your home search with confidence.

Before you sign any offer, we provide a personalized estimated cash to close so you know exactly what to expect—no surprises and no guesswork.