The Best Home Loans for Buying a House in Michigan

Michigan is known for cars, Motown, and the Great Lakes. But it is so much more than that! Surrounded by picturesque sandy shorelines, a prominent art scene, a blend of diverse cultural backgrounds, and affordable real estate, Michigan offers something for anyone looking to own a home. And MiMutual Mortgage offers a wide array of mortgage products to help you do it!

Love the water? You’re in luck!

Located in the upper Midwest region of the United States, Michigan is the only state in the nation split into two peninsulas. The Mitten State is surrounded by four of the five Great Lakes  (Lake Huron, Lake Michigan, Lake Superior and Lake Erie) and home to 11,037 inland lakes. So, if you are the hunt for a lakeside lifestyle, you are never more than 6 miles from a body of water from anywhere in the state.

Lakeshore living for less:

If are looking for a lakefront retreat but don’t have a big budget, consider settling in the Lake Huron area! According to a 2023 report by Realtor.com, which dug into the data of homes listed within a 10-minute walk to a lake, the second most affordable lake town in the United States is Rogers City, Michigan. With a median home price less than $175,000, FHA or Conventional mortgages might be a good fit for buyers in this area.

Luxury waterfront:

If your must-have in a home is a million-dollar view and direct access to water from your doorstep, consider a move to one of these luxury lake towns: Petoskey, Charlevoix, Mackinaw Island, or Glen Arbor (although there are many more!) MiMutual Mortgage offers Jumbo Loans up to $4 Million dollars to help your dream of living on the water become a reality!

Our Jumbo Loan programs can be used to purchase or refinance a primary residence, second home or investment property. We allow as little as 10% down and unlike conventional loans, there is NO PMI for having less than 20% equity!

Searching for Solitude?

Whether you want to look for Moose in Luce County, (the moose capital of Michigan) or get away from people in the least populated Keweenaw County, the Upper Peninsula offers remote wilderness for those seeking peace and quiet.

Or, if the country roads of are calling you home, the farmlands of Huron County may be right for you. Wherever you chose to start your homestead, MiMutual Mortgage offers USDA Rural Development (RD) loans that require no down payment!

What is a Rural Development loan?

USDA (RD) mortgages are loans backed by the US Department of Agriculture Rural Development. Because of this backing, there is less risk to the lender, therefore allowing relaxed credit and bankruptcy guidelines and low to no down payment options. RD loans are only available in certain rural, less-populous areas that are designated as Rural by the USDA.

These loans offer 100% financing for qualified borrowers who want to purchase or build a single-family home, repair their current home, or refinance their existing RD loan in designated rural areas. That means no money down!

Are you a budding real estate investor?

With forty 4-yr college towns, some of the nation’s best lakeside cities to visit, and unique vacation destinations, the Wolverine State offers those looking to grow their investment portfolio some great opportunities!

In recent years, US News and World Report named Grand Rapids, MI the 6^th most competitive rental market in the United States. With amazing restaurants, a thriving arts scene, and a strong economy, many people flock to Grand Rapids for a weekend getaway or to stay for good. For every apartment rental unit in Grand Rapids, there are 18 people competing for that space. According to Kiley Management, a property management firm in Michigan, other top rental markets right now include Ann Arbor, Detroit, East Lansing, Kalamazoo, and Holland.

Whether you are an investor looking to capture long-term renters, cater to the college rental crowds or run a short-stay vacation rental on Airbnb, a MiMutual Mortgage DSCR loan can work for you!

What is a DSCR loan?

DSCR, or Debt Service Coverage Ratio, is a financial metric used to evaluate the ability of an income-producing property to cover its debt obligations. In the context of real estate investment, it measures the property’s ability to generate enough rental income to cover the mortgage payments.

This means that the primary qualifying factor is the investment property’s actual or potential income, instead of a borrower’s personal income. There is no Debt-to-Income Ratio calculation, and no personal income verification.

MiMutual Mortgage understands the unique needs of real estate investors. By focusing on the property’s actual/potential rent rather than personal income, DSCR loans open up a world of opportunity to those who don’t have traditional income, for those who already have multiple investment properties or for those who are just starting their real estate journey.

Looking for a home in the Great Lakes with not-so-great savings?

In the 2023 “Most Affordable Cities for Home Buyers” report by WalletHub, which ranked cities across the nation by measuring the cost of living, housing affordability and maintenance affordability, 3 of the top 10 were Michigan cities. Flint, Michigan ranked as the second most affordable city in the nation, with Detroit and Warren rounding out the list. And in RentCafe’s 2024 list, Michigan’s cost of living is 4% lower than the national average, while housing is 10% lower than most of the country!

MiMutual Mortgage offers FHA loans and Down Payment Assistance Programs for buyers with challenged credit, little money saved or those looking for a budget-friendly home.

FHA loans:

Federal Housing Administration loans are a good option for first-time homebuyers with little saved for a down payment, borrowers with low-to-moderate income and those with lower credit scores. These loans can be easier to qualify for than conventional loans and require a 3.5% minimum down payment (which can be 100% gifted) and a minimum credit score of 580.

Down Payment Assistance:

For borrowers that need down payment assistance, MiMutual Mortgage offers a variety of national and state DPA programs. DPA’s offer first-time and repeat buyers a way to reduce or even eliminate their out-of-pocket costs to cover the down payment and closing costs. These programs can be applied to both FHA and Conventional mortgages.

As an approved Michigan State Housing Development Authority (MSHDA) lender, MiMutual Mortgage offers the MSHDA MI 10K DPA, (which offers up to $10,000 for borrowers state-wide) and the Mortgage Credit Certificate (MCC) Federal Tax Credit, which gives a dollar-for-dollar credit on the mortgage interest you paid each year.

In addition to these state programs, Michiganders can benefit from a variety of local city and county down payment assistance programs. Some examples include, The City of Warren Direct Homebuyer Assistance Program, the Port Huron Urban Pioneer Program, The Wayne County National Faith DPA and The Grand Rapids Homebuyer Assistance Fund (HAF) to name a few.

Are you a Veteran ready to put down roots?

In the 2019 Best for Vets Series, Military Times publication did a study of where the best places for Veterans to live in the United States are. 599 cities across the country were evaluated on three major factors: access to veteran services and military culture, the strength of the local economy and livability factors like crime, health, traffic, and school quality. Troy, MI and Sterling Heights, MI both landed in the top 50.

MiMutual Mortgage understands the unique needs of Veterans. With our VA loan program, Veterans, Active Duty, and qualifying spouses can obtain 100% financing, meaning no down payment needed! Our VA loans offer flexible qualify guidelines, lower credit score requirements and do not charge an underwriting fee.

Are you a healthcare provider?

University of Michigan in Ann Arbor, Wayne State in Detroit, and Michigan State University rank as some of the best medical schools in the nation year after year.

Graduating physicians, nurses and other healthcare providers may find it makes sense to stay in Michigan to practice their chosen modality.

According to Medscape’s 2023 physician compensation report, the average income for physicians nationwide is $352,000. The report compiled a list of the top 10 states to work as a physician, and Michigan made the cut!

Here, doctors earn slightly above the national average, and with healthcare currently being the largest private sector employer in the state, there is no shortage of employment opportunities. If you are a healthcare provider looking to buy a home in Michigan, we can help!

MiMutual Mortgage recently added a Doctor Loan program to our wide range of loan products. We commend you for the years of education you have invested in and understand that often comes with a significant student loan burden.

Our Doctor Loan features financing up to $1.5 Million, a low down payment requirement, an adjustable-rate option and is available to a number of professionals, such as Physicians, Nurses, Dentists, Pharmacists, Veterinarians and more.

Want a home away from home?

Michigan is one of the top 5 most popular US states for tourism and recently, a study by Family Destinations Guide ranked the Mackinac Bridge the third most popular tourist attraction in the nation, beating out NY City’s Central Park and the National Mall in Washington, DC!

Every year people from all over come to experience Sleeping Bear Dunes, Pictured Rocks, Mackinac Island, Detroit, Traverse City, Saugatuck and so much more. When you are looking for a place to get away from it all or experience something entirely new, Michigan does not disappoint!

Why spend thousands of dollars on hotels, flights, rental cars, etc.…when you can experience a vacation from the comfort of your own home? With a second house or vacation home mortgage from MiMutual, you can enjoy a staycation anytime you want or rent out your home when you are not using it and make some additional income.

Ready to Retire?

Each year, the US News and World Report publishes data on the best places to retire in the United States. In the most recent report, based on surveys given to seniors to assess happiness levels and  how well their retirement needs are met, and analyzing metrics such as housing affordability, tax rates and health care quality, two Michigan cities ranked in the top 50 of the 150 metropolitan areas examined.

Ann Arbor #11 overall and Grand Rapids made the cut at #38. Thanks to a low cost of living, affordable housing, and natural attractions in abundance, there are many benefits to enjoying your retirement in the Great Lakes State.

If you are looking to retire in Michigan, MiMutual Mortgage offers a variety of loans to help you downsize to a condominium or townhome or take advantage of our Reverse Mortgage program.

A Reverse Mortgage is a home loan exclusive to seniors aged 62 or older that can be used to access equity in your current home or to even purchase a new one. A reverse mortgage may give you the opportunity to live in your home without having the usual monthly loan payments. MiMutual Mortgage has Loan Officers who specialize in this type of loan, and they help determine if this is right for you.

Ready to make a move?

From the stunning lakes and beaches to the bustling cities and quaint small towns, to affordable housing and low crime, there are so many reasons Michigan is a great place to own a home! At MiMutual Mortgage, our goal is to make homeownership accessible to everyone, regardless of their financial background or unique needs. Connect with one of Loan Officers to see what loan option is right for you!