Tag Archive for: Home Buying Tips

How We Keep You in the Loop from Start to Finish

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Communication Is Key: How We Keep You in the Loop from Start to Finish

Buying a home is one of the biggest financial decisions you’ll ever make, and it’s natural to feel a little overwhelmed by the process. At Michigan Mortgage, we believe that the journey to homeownership doesn’t have to be stressful or confusing. The key? Clear, consistent communication every step of the way.

Why Communication Matters in the Mortgage Process

The mortgage process can involve a lot of moving parts, from pre-approval, gathering documents, and underwriting, to appraisal, title work, and finally closing. Without updates, it’s easy for homebuyers to feel left in the dark or worry about what comes next. That’s where our team steps in. We make it our mission to ensure you never feel alone or uninformed.

What Sets Michigan Mortgage Apart

Other lenders may process your loan, but we go further by committing to transparency, guidance, and connection. Here’s how we do it:

  • Personalized Updates
    We provide timely communication so you always know where your loan stands. Whether it’s an email, phone call, or text, we keep you informed as soon as there’s progress to share.
  • Dedicated Loan Officers and Processors
    You’ll have a dedicated team by your side, not a call center. Our loan officers and processors are local experts who know the ins and outs of Michigan’s market and are here to answer your questions quickly.
  • Step-by-Step Guidance
    From explaining terms like “PMI” or “escrow” to breaking down your monthly payment, we believe no question is too small. We’ll walk you through the process in plain language, not confusing jargon.
  • Proactive Problem-Solving
    If an issue arises, we won’t wait for you to find out; we’ll let you know right away and guide you through the solution.
  • Celebrating Your Milestone
    Closing day is a big deal, and we love celebrating with you! Our goal isn’t just to get you a mortgage; it’s to help you feel confident and supported as you step into your new home.

The Michigan Mortgage Promise

At the end of the day, communication isn’t just part of what we do; it’s the foundation of how we serve our clients. We promise to keep you in the loop, answer your questions with care, and guide you home with confidence.

Because when it comes to buying a home, you deserve more than a lender. You deserve a team that listens, informs, and supports you from start to finish.

5 Things You Should Not Do During the Mortgage Process

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Buying a home is one of the most exciting milestones in life—but it also comes with a few rules you’ll want to follow carefully. While your lender is reviewing your finances and preparing your approval, certain actions could throw a wrench in the process and even jeopardize your loan.

To help you stay on track, here are five things you should not do during the mortgage process.

  1. Don’t Open New Credit Accounts

It might be tempting to take advantage of that store credit card or finance a new car, but resist the urge. Every time you apply for new credit, it triggers a hard inquiry on your report. That can temporarily lower your credit score and change your debt-to-income ratio—two factors your lender is watching closely.

Tip: Wait until after closing before you shop for furniture, appliances, or a new vehicle.

  1. Don’t Make Large Purchases

Speaking of shopping, even big purchases with cash can raise questions. Large withdrawals or unexplained transfers may be seen as red flags, and they can complicate your financial profile.

Tip: Keep your spending habits steady and save the splurges for after you get the keys.

  1. Don’t Change Jobs (If You Can Help It)

Lenders like stability. A sudden job change—even if it comes with a higher salary—can delay the process because your lender needs to verify your new income and employment history. Gaps or changes in your work record may create unnecessary hurdles.

Tip: If you’re considering a career move, try to hold off until after your mortgage has closed.

  1. Don’t Co-Sign Loans for Others

It might seem harmless to help a friend or family member by co-signing, but it adds responsibility to your credit profile. That new debt is counted as yours too, and it can affect your ability to qualify for a mortgage.

Tip: Keep your financial commitments limited until after your home purchase is complete.

  1. Don’t Fall Behind on Payments

This may seem obvious, but it’s critical. Even one late payment on a credit card, loan, or utility bill can lower your credit score and raise concerns with your lender. On-time payments show responsibility and reliability—two qualities that matter when borrowing a large sum.

Tip: Set up autopay or reminders to ensure you never miss a due date during the mortgage process.

Final Thoughts

The mortgage process is about showing lenders that you’re financially steady, reliable, and ready for the responsibility of homeownership. By avoiding these five common mistakes, you’ll help keep your approval smooth and stress-free—and be one step closer to moving into your dream home.

Ready to start your journey? Reach out to our team today—we’ll guide you through every step of the mortgage process and make sure you’re set up for success.

Pre-Approval vs. Pre-Qualification: What’s the Difference?

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When you’re starting your homebuying journey, two terms you’ll hear often are pre-qualification and pre-approval. While they might sound similar, these steps are very different — and understanding the distinction can make a big impact on your home search, your timeline, and your ability to negotiate confidently.

Let’s break it down.

What is Pre-Qualification?

Pre-qualification is typically the first step in the mortgage process. It’s an informal estimate of how much you may be able to borrow based on information you provide — like your income, debts, and assets.

–It’s quick and simple
–No credit pull required (in most cases)
–Gives you a general idea of your budget

But because it’s based on self-reported info, it’s not a guarantee or official offer. It’s more of a financial snapshot than a green light.

What is Pre-Approval?

Pre-approval takes things a step further. It’s a formal mortgage application that includes:

– A credit check
-Verification of income and employment
-Review of your assets and debts

The result? A lender-approved estimate of how much they’re willing to loan you — often valid for 60–90 days.

–Shows sellers you’re a serious buyer
–Gives you a stronger edge in competitive markets
–Helps you move faster once you find the right home

Why It Matters in Your Timeline

  • Pre-Qualification is a great starting point when you’re just beginning to explore your options.
  • Pre-Approval puts you in the position to act quickly once you find “the one.”

If you’re already house hunting without a pre-approval, you may find yourself missing out on homes or facing delays when it’s time to make an offer.

Pre-Approval = More Negotiation Power

In today’s fast-paced market, sellers are looking for serious buyers. A pre-approval letter tells them:

-You’ve done your homework
-You’re financially ready
-Their sale is less likely to fall through

This gives you more leverage when it comes to making offers, negotiating terms, and standing out from competing buyers.

So, Which One Do You Need?

Thinking about buying? Start with a pre-qualification.

Ready to buy? Get pre-approved.

Better yet — talk to a mortgage expert to figure out what makes the most sense for your timeline and goals.

Let’s Hit Your Home Goals

At Michigan Mortgage, we’re here to help you navigate every step of the process — from pre-qualification to pre-approval and closing day.

Not sure where to start? Reach out today to start your journey with confidence.

Mortgage Terms, Explained: No Jargon, Just Answers

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Let’s be honest: the mortgage process can feel like learning a whole new language. Between acronyms, industry lingo, and legal-sounding terms, it’s easy to feel overwhelmed. That’s why we’re breaking it all down — no jargon, just clear answers — so you can feel confident every step of the way.

Whether you’re a first-time buyer or need a refresher, here are some common mortgage terms explained in plain language:

Pre-Approval

What it means: A lender reviews your financial information and tells you how much you can borrow.
Why it matters: It shows sellers you’re serious and ready to buy — like a permission slip to shop for a home.

Down Payment

What it means: The amount of money you pay upfront toward your home.
Why it matters: A higher down payment often means lower monthly payments and better loan terms.

Interest Rate

What it means: The cost of borrowing money from your lender, shown as a percentage.
Why it matters: Lower interest rates = less money paid over time. Your rate depends on your credit, loan type, and market conditions.

Rate Lock

What it means: A guarantee that your interest rate won’t change between pre-approval and closing, usually for a set time.
Why it matters: Protects you if rates go up before your loan is finalized.

APR (Annual Percentage Rate)

What it means: Your interest rate plus other loan-related fees, shown as a yearly percentage.
Why it matters: It helps you compare the total cost of different loans — not just the rate.

Loan Estimate

What it means: A document that outlines your loan details, including interest rate, monthly payment, and closing costs.
Why it matters: It helps you understand the full cost of your mortgage and compare offers from different lenders.

Escrow

What it means: An account where part of your monthly payment is set aside to cover property taxes and insurance.
Why it matters: It keeps you from getting hit with big bills all at once.

DTI (Debt-to-Income Ratio)

What it means: A comparison of your monthly debt to your income.
Why it matters: Lenders use it to see if you can afford a mortgage. Lower DTI = better approval odds.

Closing Costs

What it means: Fees paid at the end of the mortgage process (loan origination, title insurance, taxes, etc.).
Why it matters: Usually 2–5% of the home’s price, so it’s important to budget for them.

Underwriting

What it means: The lender’s process of verifying your financial info to approve the loan.
Why it matters: It’s the final review before the loan gets the green light!

Final Thoughts

Understanding mortgage terms shouldn’t feel like decoding a secret message. When you work with a lender who explains things clearly and honestly (like us!), you’ll feel empowered — not overwhelmed.

Still have questions? We’ve got answers.
Reach out anytime — we’re here to make the mortgage process simple, clear, and stress-free from start to finish.

The Mortgage Paperwork Checklist: What You Need and Why

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Buying a home is an exciting journey, but if there’s one part that can feel overwhelming, it’s the paperwork. From pay stubs to tax returns, lenders ask for a lot of information to make sure they fully understand your financial situation before approving your loan.

But don’t worry! With a little preparation and organization, you can keep the process smooth and stress-free. Let’s break down the essential documents you’ll need, why they matter, and how to stay on top of it all.

Income and Employment Verification

What you’ll need:

  • Recent pay stubs (usually the last 30 days)
  • W-2 forms from the past two years
  • Tax returns (especially if you’re self-employed)
  • Year-to-date profit and loss statements (for business owners)

Why it matters:
Lenders want to verify that you have a steady, reliable source of income to comfortably cover your future mortgage payments. If you’re self-employed or have multiple income streams, expect to provide additional supporting documents to show consistent earnings.

Asset Statements

What you’ll need:

  • Recent bank statements (checking and savings accounts)
  • Retirement or investment account statements

Why it matters:
These documents prove that you have enough money for the down payment, closing costs, and reserves if required. They also help your lender see if there are any large deposits or unusual activity that needs to be explained.

Debt and Liability Information

What you’ll need:

  • Monthly statements for credit cards, auto loans, student loans, or other debts
  • Documentation for any alimony or child support obligations (if applicable)

Why it matters:
Lenders use your debt information to calculate your debt-to-income (DTI) ratio, a key factor in determining how much you can safely borrow.

Identification and Personal Documentation

What you’ll need:

  • A government-issued photo ID (driver’s license or passport)
  • Social Security number (or documentation for alternative identification, if applicable)

Why it matters:
These items help confirm your identity and protect against fraud.

Other Possible Documents

Depending on your unique financial situation, lenders may also request:

  • Divorce decrees
  • Gift letters (if part of your down payment is a gift from family)
  • Rental history or current lease agreement
  • Proof of additional income, like bonuses or commissions

How to Stay Organized

A big part of speeding up the mortgage process is being organized from the start. Here are a few tips:

  • Create a dedicated folder (digital or physical): Keep all requested documents in one place so they’re easy to access.
  • Respond quickly: The faster you provide updated documents, the smoother (and faster!) your process will go.
  • Ask questions: If you’re unsure why something is needed, don’t hesitate to ask your lender. A great lending team will always be happy to explain.

Final Thoughts

While the paperwork can feel daunting, each document plays an important role in helping your lender understand your financial picture and secure the best possible loan for you. Being prepared not only reduces stress but can also help you get to closing day even faster.

At Michigan Mortgage, we’re here to guide you through every step, including that stack of paperwork.

Ready to get started? Let’s make your homeownership journey as smooth as possible.

How to Choose a Mortgage Lender: A Homebuyer’s Guide

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Choosing the right mortgage lender is an important decision, and not always the easiest. With so many options out there, including banks, credit unions, and mortgage companies, it can be hard to know where to start.

If you’ve been searching “how to choose a mortgage lender,” you’re not alone, and you’re in the right place. This guide breaks down what to look for, what to avoid, and the right questions to ask so you can move forward with confidence.

Know What You Need in a Lender

Before you start comparing rates or filling out applications, take time to define what you need, not just in a mortgage, but in the lender who will help you get there. The right lender isn’t just about numbers; it’s someone who understands your financial situation and offers the right solutions to match.

Understand Your Mortgage Needs

Start by thinking through your goals and financial picture:

  • What’s your monthly comfort zone? Factor in taxes, insurance, and maintenance along with your mortgage payment.
  • How long will you stay in the home? A long-term stay might favor a fixed-rate loan, while a shorter-term plan could make an adjustable-rate option more appealing.
  • How much can you put down? A larger down payment might qualify you for better rates, but there are also low and no-down-payment options if needed.

Clarifying these priorities early helps you focus on lenders who offer programs that align with your financial goals, whether that’s stability, flexibility, or support for unique circumstances.

Identify Your Borrower Type

Every buyer’s journey is different, and your background may influence which lenders and loan options are best for you. Consider where you fit:

  • First-time buyers may benefit from added guidance and access to programs that reduce upfront costs.
  • Self-employed individuals often require a lender experienced in evaluating non-traditional income.
  • Veterans, rural buyers, and low-to-moderate income borrowers may qualify for alternative loan programs.

Explore Special Loan Programs You May Qualify For

Special loan programs can lower the barrier to entry for many buyers, but only if your lender knows how to navigate them. These options can include:

  • FHA Loans – Backed by the Federal Housing Administration; FHA loans are ideal for buyers with lower credit scores or limited savings.
  • VA Loans – Offered to eligible veterans, service members, and surviving spouses with zero down and no mortgage insurance.
  • USDA Loans – Designed for rural areas, USDA loans feature no down payment and reduced mortgage insurance costs.
  • Down Payment Assistance (DPA) – Local or state programs (like MSHDA in Michigan) can help cover your down payment or closing costs.

Not all lenders offer these programs, so if you are interested in seeing if you qualify, choose a lender who has the expertise to guide you through the requirements.

Research the Different Types of Mortgage Lenders

Not all mortgage lenders operate the same way. Rates, loan programs, fees, and flexibility can vary depending on the type of institution.

Common mortgage lenders include:

  • Banks and credit unions
  • Online lenders
  • Independent mortgage companies
  • Mortgage brokers

Mortgage companies often provide the broadest selection of loan products, including government-backed programs and down payment assistance options.

Get Pre-Approved Before You Shop

Once you’ve narrowed down your mortgage needs and explored loan options, the next step is getting pre-approved. A preapproval is a crucial step that gives you clarity and a competitive edge in the homebuying process.

What is a mortgage pre-approval?

It’s a lender’s written estimate of how much they’re willing to let you borrow, based on your income, credit, debt, and assets. Unlike prequalification, which is often just a quick estimate, pre-approval involves verifying your financial documents and running a credit check.

Why it matters:

  • You’ll know your budget. Pre-approval helps you focus your home search on what you can truly afford.
  • You’ll be taken seriously. Sellers and real estate agents are more likely to prioritize your offer if you’re already pre-approved.
  • You’ll move faster. In competitive markets, having pre-approval in hand can give you the speed advantage you need to make a strong offer quickly.

What documents do you typically need?

  • Recent pay stubs or proof of income
  • W-2s or tax returns
  • Bank statements
  • ID and Social Security number
  • Authorization for a credit check

Evaluate Communication, Customer Review, and Lender Reputation

When choosing a mortgage lender, trust and communication go hand in hand. A lender might advertise a competitive rate, but if they’re hard to reach or poorly reviewed, the process can quickly become stressful. Here’s how to assess both reputation and service quality:

Do your research:

  • Check customer reviews on Google, Zillow, or LendingTree.
  • Look for consistent feedback about responsiveness, clarity, and reliability.
  • Use the NMLS Consumer Access site to confirm licensing and spot any disciplinary actions.

Test their communication early:

  • Are they quick to respond to your calls or emails?
  • Do they explain things clearly and thoroughly?
  • Do they offer multiple ways to connect (phone, email, video, in-person)?
  • Are they proactive with updates and timelines?

Why it matters:

You’ll be working closely with your lender during a high-stakes financial decision. Choosing someone who’s both reputable and communicative helps ensure your loan experience is smooth, transparent, and stress-free.

Ask Questions Before You Commit

Even after narrowing down your options, don’t feel pressured to rush into a decision. Choosing a mortgage lender is a major financial commitment, and asking the right questions up front can help you avoid unexpected issues later. A good lender will welcome your questions and answer them clearly.

Here are a few things to ask:

  • What’s the estimated timeline from application to closing?
  • Will I have a dedicated loan officer to work with throughout the process?
  • What communication methods and frequency can I expect?
  • Are there any current special offers/incentives I qualify for?
  • Are there any lender-specific fees I should know about?
  • What’s your policy on rate locks, and how long is mine good for?
  • Is there a prepayment penalty if I decide to pay off my loan early?

Why it matters: Asking these questions helps you gauge how transparent, responsive, and experienced a lender really is. It’s also a chance to understand the full cost of borrowing and avoid surprises when you get to the closing table.

Ready to Choose the Right Mortgage Lender?

Knowing how to choose a mortgage lender can make loan shopping easier. It’s all about working with someone who understands your goals, simplifies the process, and earns your trust. That’s exactly what you’ll find with Michigan Mortgage.

Our experienced loan officers take the time to understand your needs and walk you through your options with clarity and confidence. In addition, we are equipped to help buyers with specialized loan programs, including MSHDA, VA, USDA , first-time buyer support, zero-down options, and fast closings.

Let’s find the mortgage that fits your life. Contact us today to get personalized guidance and take the next step toward homeownership with confidence.

Why Is the Mortgage Process So Long?

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Understanding the timeline, what’s happening behind the scenes, and how you can help speed things up.

Buying a home is exciting, but if you’ve ever felt like the mortgage process drags on forever, you’re not alone. Many buyers are surprised at how much time it takes between applying for a loan and finally closing on their dream home.

So… why does it take so long? Let’s pull back the curtain on the mortgage process and give you some helpful tips to keep things moving.

The Typical Mortgage Timeline

While every loan is different, the average mortgage process takes around 30–45 days from application to closing. Some may wrap up sooner, while others take longer depending on several factors.

Here’s a general breakdown of the timeline:

  1. Pre-Approval (1–3 Days)

    A lender reviews your financials and provides a letter showing how much you’re qualified to borrow.

  2. House Hunting (Varies)

    This part is totally in your hands! Some buyers find “the one” quickly, while others take weeks or months.

  3. Loan Application (1–3 Days)

    Once you have an accepted offer, you’ll complete a full mortgage application and provide detailed financial documents.

  4. Processing & Underwriting (1–3 Weeks)

    Behind the scenes, the lender reviews everything: income, credit, assets, tax returns, employment, and more.
    The underwriter ensures the loan meets guidelines and may request additional info (called “conditions”).

  5. Appraisal & Inspection (1–2 Weeks)

    An appraisal ensures the home’s value matches the loan amount. Inspections (while optional) protect you from surprises.

  6. Final Approval & Closing (1–2 Weeks)

    After all documents and conditions are cleared, you’ll get a clear-to-close. Then comes the final walkthrough and closing day!

What’s Taking So Long?

It may seem slow, but a lot is happening behind the scenes:

  • Verifying Documents: Lenders must carefully check pay stubs, tax returns, bank statements, and more.
  • Third-Party Delays: Appraisers, inspectors, title companies, and insurance providers are all integral to the process, and each has its own specific timeline.
  • Regulations: Mortgage lending is highly regulated to protect buyers, but that also means more boxes to check.
  • Loan Volume: During busy seasons, such as spring and summer, processing times may be longer due to high demand.

How You Can Help Speed Things Up

Good news — there are a few things you can do to help your mortgage process move faster and smoother:

  1. Get Pre-Approved Early

    Know your budget and streamline the process once you find a home.

  2. Respond Quickly

    When your lender requests documents or signatures, the faster you reply, the faster things move.

  3. Stay Financially Stable

    Avoid big purchases, job changes, or new credit applications during the process.

  4. Keep Documents Organized

    Have your W-2s, tax returns, bank statements, and ID ready to go.

  5. Work With a Responsive Lender

    Partnering with a proactive, communicative mortgage team (like ours!) can make all the difference.

Final Thoughts

Yes, the mortgage process can feel long, but that’s because your lender is working hard to make sure your loan is rock-solid. With a little preparation, the right mindset, and the right team, you can make it through with fewer delays and less stress.

At Michigan Mortgage, we walk with you every step of the way — keeping you informed, on track, and moving toward the keys to your new home.

Ready to start your mortgage journey?
Let’s talk! Our friendly loan experts are here to guide you from pre-approval to closing day and beyond.

FICO Score

How Your Credit Score Impacts the Home-Buying Process

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Your credit score plays a crucial role in the home-buying journey. Whether you’re just beginning to think about purchasing a home or already shopping for mortgage options, understanding how your credit impacts the process can help you plan ahead and secure the best possible deal.

Why Credit Scores Matter

Mortgage lenders use your credit score to evaluate how likely you are to repay your loan. The higher your score, the more favorable your terms will likely be. Here’s how your credit score can affect the process.

  • Loan Approval: Most lenders require a minimum credit score to qualify for a mortgage. Conventional loans often require at least a 620, while FHA loans may accept scores as low as 580.

  • Interest Rates: A higher credit score usually results in a lower interest rate, which can save you thousands over the life of your loan.

  • Loan Programs: Some government-backed loans or first-time homebuyer programs may only be available to borrowers with certain credit thresholds.

  • Private Mortgage Insurance (PMI): If your credit score is lower, you may pay higher PMI premiums if you put down less than 20%.

Tips to Improve Your Credit Score

Improving your credit score can take time, but small, consistent steps can make a big difference.

  1. Check Your Credit Reports: Review your reports from all three major bureaus (Experian, Equifax, and TransUnion) to ensure there are no errors or outdated information.

  2. Pay Bills on Time: Payment history makes up a large portion of your score. Set reminders or automate payments to avoid late fees.

  3. Reduce Credit Card Balances: Keep your credit utilization below 30% of your available limit. Paying down high balances can quickly boost your score.

  4. Avoid Opening New Accounts: Each new account triggers a credit inquiry, which can slightly lower your score. Hold off on opening new credit lines during the mortgage process.

  5. Keep Old Accounts Open: The length of your credit history affects your score. Don’t close old cards, even if you don’t use them often.

Final Thought

Your credit score can open doors — or create obstacles — in the home-buying process. By taking control of your credit now, you’ll be in a stronger position when you’re ready to make an offer on your dream home.

Need help understanding how your credit score affects your mortgage options? Reach out — we’re here to guide you every step of the way!

5 Things to Look for When Buying a Home in the Summer

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Summer is one of the most exciting times to buy a home in Michigan. The weather is beautiful, school’s out, and more homes are typically available on the market. But while summer brings opportunity, it also comes with a few unique considerations.

At Michigan Mortgage, we’re here to help you navigate the process with confidence. Before you dive into house hunting, here are five key things to look for when buying a home in the summer.

1. Watch for Seasonal Competition

Summer is peak home-buying season, which means more competition. With more buyers shopping at the same time, homes can sell quickly — sometimes with multiple offers.

What You Can Do:
Get pre-approved before you start your search. It strengthens your offer and shows sellers you’re serious.

2. Consider Cooling and Energy Costs

A home may look perfect on a sunny day, but make sure you ask about how well it stays cool in the heat. Michigan summers can be humid, and an outdated cooling system could mean higher utility bills.

Things to ask about:

  • Age and condition of the A/C unit
  • Quality of insulation (especially in the attic)
  • Average summer utility costs

3. Check the Roof, Windows, and Landscaping

Summer weather makes it easier to spot issues outside the home. Look for signs of wear on the roof, windows, siding, and driveway. You’ll also want to check for drainage or grading problems after it rains.

Pro Tip:
If possible, schedule your inspection after a storm to reveal any leaks, pooling water, or foundation concerns.

4. Think About Timing

Buying in the summer often means trying to move before the school year starts or before Michigan’s winter weather returns. Factor in the closing timeline, moving logistics, and any necessary home repairs or updates.

The Good News:
We work hard to ensure your loan closes on time — so you can enjoy your new home without delays.

5. Picture Your Life There — All Year Long

It’s easy to fall in love with a home in the summer sunshine, but don’t forget to think long-term. Ask yourself how the home—and the neighborhood — will fit your lifestyle year-round.

Consider:

  • Winter commute and snow removal
  • Local school and work traffic
  • Access to main roads and necessities in bad weather

Ready to Buy This Summer?

We’re Ready to Help.

Buying a home during the summer can be exciting and efficient with the right support. At Michigan Mortgage, we specialize in helping buyers throughout Michigan find the right loan and close with confidence.

Call us today to get started — or apply online anytime.

Let’s make this your best summer yet.

MSHDA

MSHDA Increases Sales Price Limit – What Does That Mean for You?

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Michigan homebuyers, take note — big changes are coming that could make purchasing a home more achievable than ever. Beginning in May 2025, the Michigan State Housing Development Authority (MSHDA) will raise its maximum sales price limit for the first time in over 16 years. Thanks to the passage of HB 5032, this update opens new doors for buyers across the state.

Here’s what you need to know — and how this change could work in your favor.

What’s Changing?

Higher Sales Price Limits
MSHDA’s new guidelines will increase the maximum sales price for eligible single-family homes from $224,500 to $544,233. This significant jump gives homebuyers access to a broader range of properties throughout Michigan, including many that were previously out of reach.

Expanded Eligibility
MSHDA programs have historically been geared toward first-time homebuyers, but that’s changing. Beginning next May, repeat buyers will also be eligible for MSHDA assistance in 82 percent of Michigan counties. This expansion means more buyers, regardless of where they are in their homeownership journey, will be able to take advantage of MSHDA programs.

Flexible Loan Compatibility
MSHDA programs can be paired with a variety of popular loan types, including Conventional, FHA, VA, and RD (Rural Development) loans. This added flexibility allows more buyers to find financing solutions tailored to their specific needs.

Need more information? Fill out this form and our team will be in touch soon!

How This Helps You

Access to More Inventory
The increased price cap opens the door to a larger pool of available homes — giving you more options in more locations and helping you find a home that truly fits your lifestyle and budget.

Up to $10,000 in Down Payment Assistance
MSHDA’s MI Home Loan DPA program offers up to $10,000 to help cover your down payment and closing costs. This can be a game-changer for buyers looking to make a competitive offer without depleting their savings.

Ongoing Tax Savings
Through MSHDA’s Mortgage Credit Certificate (MCC) program, eligible buyers can receive a federal tax credit worth up to $2,000 annually, based on mortgage interest paid. This benefit boosts affordability and adds value for years to come.

Simple, Streamlined Financing
Because MSHDA works seamlessly with a range of loan types, the financing process remains straightforward. And when you work with an experienced lender like Michigan Mortgage, you have a trusted partner guiding you through every step.

What Should You Do Now?

Start Looking at Homes
Explore neighborhoods and listings that will fall within the new sales price limits. With more homes potentially in reach, it’s a great time to refine your search.

Reach Out to Michigan Mortgage
Our team is well-versed in MSHDA programs and how they work. We can help you navigate the changes, understand your eligibility, and secure the right loan for your needs.

Stay Updated
The new sales price limits are expected to take effect in May 2025, once HUD releases updated income guidelines and the IRS announces new safe harbor limits in April. We’ll keep you informed with everything you need to know as the changes roll out.

Final Thoughts

MSHDA’s updated guidelines represent a major win for Michigan homebuyers. Whether you’re purchasing your first home or transitioning to your next, the increased sales price limits and expanded eligibility open the door to more opportunity — and more homes.

At Michigan Mortgage, we’re committed to helping you make the most of it. If you’re ready to learn more or begin your home search, contact us today. We’re here to help you move forward with confidence!