The 2026 Michigan Home Loan Guide
Every Michigan home loan compared in one place, so you can see which one fits your credit and down payment, and where MSHDA can help with the down payment. Read it here or get it emailed.
Which Michigan home loan is right for you?
There is no single best mortgage. There is the one that fits your credit, your down payment, and your goals. Most Michigan buyers land on one of five paths, and the right choice usually comes down to your credit score and how much you have to put down. Here is the plain-English map.
| Loan | Min down | Min credit | Best for |
|---|---|---|---|
| VA | 0% | 580–620 | Veterans, active duty |
| USDA | 0% | 640 | Eligible rural areas |
| FHA | 3.5% | 580 | Lower credit, flexible ratios |
| Conventional | 3% | 620 | Stronger credit; drops PMI at 20% |
| Jumbo | 10%+ | 700+ | Above the conforming limit |
Don't have the down payment? There's help.
Michigan runs its help through MSHDA, the state housing development authority. The MI 10K DPA Loan gives up to $10,000 toward your down payment and closing costs as a 0% deferred second, with no monthly payment, repaid only when you sell, refinance, pay off the first mortgage, or stop living in the home. It pairs with a MSHDA MI Home Loan and needs a 640 credit score. MSHDA also keeps a mortgage credit certificate worth 20% of your interest as a tax credit. Assistance layers onto your first mortgage, so you keep more cash at closing. First-time buyers in Michigan can see the full MSHDA menu, the county income limits, and who qualifies.
What credit score do you need?
Lower than most people assume. FHA and VA open at 580, USDA at 640, conventional at 620, and jumbo usually wants 700+. A 600 score has real options today, and a focused 60–90 days can lift you a full tier and cut your rate. Your score sets your menu; it rarely closes the door.
What counts as a jumbo loan?
A jumbo loan is any mortgage above the conforming limit the FHFA sets each year. The 2026 baseline is $832,750, and in Michigan it applies in every one of the 83 counties, because no Michigan county qualifies as high-cost. Above that limit the loan cannot be sold to Fannie Mae or Freddie Mac, so it is underwritten to stricter standards, typically a larger down payment and a 700+ score. Most Michigan buyers stay under the limit; Ann Arbor and the wealthier Oakland County suburbs are where it comes up.
Figures reflect current 2026 guidelines; the conforming limit and program terms change — confirm current numbers with a specialist. Sources: FHFA, HUD, VA, Fannie Mae, Freddie Mac. This is not a commitment to lend.
Frequently asked questions
What types of home loans are available in Michigan?
Five main paths: VA (0% down for veterans), USDA (0% down in eligible rural areas across northern Michigan and the UP), FHA (3.5% down, 580 credit), conventional (3% down, 620 credit, drops PMI at 20% equity), and jumbo (above the $832,750 conforming baseline, which applies in every Michigan county). MSHDA's MI 10K DPA can layer onto most of them.
What credit score do you need to buy a house in Michigan?
It depends on the loan. FHA and VA open at 580, USDA at 640, conventional at 620, and jumbo usually wants 700+. A 600 score has real options, and a focused 60–90 days of credit work can move you a full tier and lower your rate.
What is a jumbo loan?
A jumbo loan is any mortgage above the conforming loan limit the FHFA sets each year. The 2026 baseline is $832,750, and it applies in every Michigan county since none is high-cost. Above that limit the loan can't be sold to Fannie Mae or Freddie Mac, so it's underwritten to stricter standards, typically 10%+ down and a 700+ score.