Do I need 20% down to buy my first home?

No. That is the most common myth we hear. Many first-time buyers close with 3% to 3.5% down, and some qualify for assistance that reduces that further.

The Michigan State Housing Development Authority offers mortgage and down payment assistance programs for eligible Michigan buyers. Availability, funding and limits change, so we confirm current terms when you apply.

Start with a pre-approval. It tells you your realistic price range and makes your offer credible to Downriver sellers.

Loan Program

First-Time Home Buyer Programs

Name: Downriver Mortgage
Address: 123 Biddle Avenue, Suite 200, Wyandotte, MI, 48192, US
Telephone: (248) 617-7953
Price range: $$

First-time home buyer programs combine low down payment loans with state and local assistance to reduce the cash you need at closing. In Michigan, that often means pairing an FHA or conventional loan with MSHDA down payment assistance, which many Downriver buyers use to purchase in Southgate, Taylor, Lincoln Park and Wyandotte.

What it is

Low down payment first mortgages, including 3% conventional and 3.5% FHA.
Michigan State Housing Development Authority down payment assistance, when available.
Lender and seller credits that offset closing costs.

Who it's for

Buyers who have not owned a home in the past three years, under most program rules.
Households with limited savings but stable income.
Renters in Downriver whose current rent already resembles a mortgage payment.

Typical requirements

Home buyer education is required by many assistance programs.
Income and purchase price limits apply to state assistance.
Qualifying credit and verified income and assets.

Guidelines vary by lender and change over time. Meeting these items does not guarantee approval, and all loans are subject to credit and property approval.

Advantages

Less cash needed to reach the closing table.
Assistance programs can be layered with standard loan programs.
Builds equity instead of paying rent.

Trade-offs

Assistance funds are limited and program rules change.
Income and price caps exclude some buyers.
Extra paperwork and education requirements add steps.

FAQ