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Key Takeaways for Michigan Home Buyers:

Here's what you need to know to get started if you’re looking at buying in the Great Lake State:

Average Home Prices in Michigan

As of April 2025, the median sale price for a single-family home in Michigan is $257,300.

Average home price:

  • Ann Arbor: $538,791
  • Grand Rapids: $293,362
  • Detroit: $78,028
  • Lansing: $160,330
  • Kalamazoo: $234,160

Source: zillow.com/home-values

Average Home Size in Michigan

The average size for a single-family home in Michigan is approximately 2,000 square feet.

Average home size:

  • Ann Arbor: 2,146 square feet
  • Grand Rapids: 1,883 square feet
  • Detroit: 1,483 square feet
  • Lansing: 1,633 square feet
  • Kalamazoo: 1,870 square feet

Source: https://fred.stlouisfed.org/

Michigan State Taxes

  • Michigan imposes a flat income tax rate of 4.25% as of 2025. This applies to most types of income, including wages and self-employment income.
  • The average effective property tax rate in Michigan is approximately 1.24% of a home's assessed value. 
  • Michigan has a statewide sales tax rate of 6%, with no additional local sales taxes. 

How Much Can You Afford in Michigan?

Recommended
Monthly Payment:
$750.00

affordability graph legend
$750.00
$1050
$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

Michigan Down Payment Assistance Programs

MI 10K Down Payment Assistance Program

The MI 10K Down Payment Assistance (DPA) Program helps home buyers with low and moderate incomes by providing up to $10,000 toward down payment, closing costs, and prepaid expenses. This assistance, available statewide, comes in the form of an interest-free loan.

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More about this program
  • Must be combined with a MSHDA MI Home Loan
  • DPA up to $10,000
  • Can be used for down payment, closing costs, and prepaid expenses
  • Homebuyers must contact a MSHDA approved lender to apply
  • Max financing is not required
  • No monthly payments
  • A homebuyer education certificate of completion is required for all homebuyers
  • Repayment of the loan is deferred until certain events, such as payoff of the first mortgage, the sale or refinance of the home, or when the home is no longer owner-occupied.
  •  

First‑Generation Down Payment Assistance Program (Michigan)

The First-Generation Down Payment Assistance Programs offers Michigan home buyers a $25,000 second‑mortgage loan to help over down payment and closing costs.

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More about this program

  • First‑time home buyer status for you and your parents (no ownership in past 3 years)

  • Purchase and live in the home as your primary residence

  • Complete an in‑person HUD‑certified homebuyer education course

  • Contribute at least 1% of your own funds toward the purchase

  • Meet MSHDA household income limits

  • Home purchase price must be $544,233 or less (after May 1, 2025)

  • Use alongside an MI Home Loan (Conventional, FHA, or USDA)

Essex + National Homebuyers Fund FHA Program

This down payment assistance program helps buyers get into a home with little to no upfront cost, offering up to 101.5% financing through an FHA first mortgage and a second lien.

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More about this program
  • FHA loan covers 96.5% of the purchase price
  • Second lien covers 3.5% or 5% for down payment or closing costs
  • Minimum credit score: 600 (660 for manual underwriting)
  • No first-time buyer requirement
  • No max DTI with DU/LP approval
  • Homebuyer education required (Fannie Mae HomeView – free online)
  • Non-occupant co-borrowers allowed
  • Eligible properties: Single-family homes, duplexes (2 units), PUDs, condos (agency approved), townhomes, manufactured homes allowed (except single-wides)

Lakeview National Community Lending Program

The Lakeview National program supports low- to moderate-income buyers with down payment assistance and flexible financing to make homeownership more accessible.

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More about this program
  • 30-year fixed-rate conventional mortgage
  • Second lien offers up to 4% for down payment assistance
  • Max LTV/CLTV: 97% / 105%
  • Income limit: Up to 140% of area median income (AMI)
  • Minimum credit score: 660
  • DTI: Lesser of 50% or AUS approval
  • First lien acquired by Lakeview; second lien from an approved DPA provider
  • Eligible properties: Single-family detached or attached homes, single-family homes with accessory units (must be zoned single-family), PUDs and condominiums, rural properties (must be residential in nature)

Churchill Mortgage is an approved lender for these down payment assistance programs. Contact us today to see if you qualify!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions from Michigan Home Buyers.

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How Much Should I Budget for Closing Costs in Michigan?

Home buyers in Michigan typically spend between 2% and 5% of the home’s purchase price on closing costs. The exact amount depends on the price of the home, loan type, and local fees.

For example, on a $300,000 home, you might expect to pay $6,000 to $15,000 in closing costs. Some down payment assistance programs in Michigan may also help cover a portion of these expenses.

You will receive your closing costs from your Home Loan Specialist in a Loan Estimate that you will receive after you apply for your home loan and in the Closing Disclosure document that is provided before your official closing day.

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What Are the Most Popular Home Loan Types in Michigan?

Michigan home buyers can choose from a variety of mortgage options tailored to different needs. Here are the most common types:

  • Conventional Loans – Fixed-rate mortgages with down payments as low as 3%, no mortgage insurance needed when putting down 20%; ideal for strong credit borrowers.

  • FHA Loans – Backed by the Federal Housing Administration, these are popular with first-time buyers and those with lower credit scores, requiring just 3.5% down.

  • VA Loans – Exclusive to eligible veterans and active-duty military, these offer zero down payment and no private mortgage insurance (PMI).

  • USDA Loans – For homebuyers in designated rural areas, USDA loans provide 100% financing with no down payment required.

  • MSHDA MI Home Loan – A Michigan state-backed program offering down payment assistance for Conventional, FHA, VA, or USDA loans through the Michigan State Housing Development Authority

Collaboration
How Can I Find a Trusted Local Michigan Realtor to Work With?

Churchill Mortgage's experienced Home Loan Specialists work closing with a network of trusted, local real estate agents across the state of Michigan. Just ask for a referral and we'll provide you with a professional who is committed to finding the right home for you.

 
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How Do Schools Rank in Michigan?

Michigan is home to several high-performing public school districts, especially in suburban areas of Detroit and Grand Rapids. These districts consistently receive top ratings for academics, teacher quality, student outcomes, and overall school experience.

Top-Rated School Districts (2025)

  • Novi Community School District – Ranked #1 in Michigan, praised for its rigorous academics, varied extracurriculars, and strong college prep offerings.

  • Northville Public Schools – Ranked #2 statewide, lauded for supportive teachers, high academic standards, and student success.

  • Troy School District – Known for academic excellence and innovative programs.

  • East Grand Rapids Public Schools – Consistently a top-15 district in Michigan; noted for strong academics and student engagement.

  • Okemos Public Schools – Well known for competitive academics, excellent arts, and sports programs.

For detailed school ratings, graduation rates, and test scores, check the Michigan School Data Dashboard.

For more info go to: GreatSchools.org

Reviews from Michigan Home Buyers

★ ★ ★ ★ ★

"John is professional, friendly, and an exceptionally talented salesman. His exceptional business acumen, convincing personality, and creative workarounds to help me secure an FHA loan were highly commendable."

Kishor G.
Novi, MI
★ ★ ★ ★ ★

"Seth and his team are the best mortgage people to work with in Grand Rapids! Seth is honest, knowledgeable, and genuine. He truly has his customers best interest at heart. Seth encouraged my wife and I to do a 15 year mortgage and even pay it off early. That type of honesty is hard to find. Our builder put some tight time frames on Seth and his team and they came through every time for us."

Steven H.
Byron Center, MI
★ ★ ★ ★ ★

"The entire Churchill team is easy to work with, timely, professional, and truly excited for you! Seth is the best, he treated us like family the whole way, even being willing to call/text outside working hours to make sure everything ran smoothly."

Joel T.
Grand Rapids, MI

4.9 / 5

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Top Rated Mortgage Lender

Over 100,000+ reviews from Homeowners!

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Michigan Branch Locations

Wyoming, MI

616-284-4555

Visit the Branch Website

5751 Byron Center Ave SW, Suite XY

Traverse City, MI

231-237-8229

Visit the Branch Website

Traverse City, MI

Okemos, MI

517-853-0008

Visit the Branch Website

2525 Jolly Road, Ste 200

Churchill Loan Officers in Michigan

Conforming and high balance allowed. Cooperative housing not eligible. Not all applicants will qualify. Not a commitment to lend. Other restriction or limitations to any program may apply.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

Sources:
https://www.attomdata.com/data/us-real-estate/wa/

As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws ensuring all potential borrowers have access to the same information, services, and opportunities throughout the home loan process.