Resources / Michigan Mortgage Questions

How Much Cash Do I Need to Buy a $300,000 House in Michigan?

For a $300,000 Michigan house, the down payment alone could be $9,000 with an eligible 3%-down conventional loan or $10,500 with 3.5%-down FHA financing. Total cash needed is higher unless eligible credits, gifts or assistance cover part of the remaining costs.

Separate the down payment from cash to close

Cash to close includes the down payment, lender and third-party closing charges, prepaid interest and insurance, and initial escrow funding, less your earnest-money deposit and eligible credits. A reserve requirement is money you must still have available; it is not necessarily money paid at closing.

How a deposit and seller credit change the number

Using the $19,500 FHA illustration, an eligible $6,000 seller credit toward allowable costs and a $3,000 earnest-money deposit already paid would leave an estimated $10,500 due at closing. You would have contributed $13,500 in total, including the earlier deposit. A seller credit generally cannot replace the required down payment, and unused credit is not a cash rebate.

What if I qualify for VA or USDA?

Eligible VA borrowers and qualifying USDA borrowers and properties may have no required down payment. That does not eliminate closing costs, prepaid items or applicable program fees. Eligibility and any financed fees need a specific review.

Michigan costs to check before an offer

• Use a post-purchase property-tax estimate, not only the seller’s current bill.
• Ask how the closing date changes prepaid interest and escrow funding.
• Get an insurance estimate and identify condo dues or special assessments.
• Keep cash for moving, repairs and any required reserves.
• Confirm gifts or assistance are permitted and documented before relying on them.

Compare Grand Rapids or Holland property costs and run the affordability calculator alongside this cash budget.

Frequently asked questions

Can I use all my savings for closing?

A loan may require reserves, and your own budget should allow for surprises. Ask Mike to compare the remaining cash as well as the payment.

Is $5,000 enough for this purchase?

It does not cover either $9,000 or $10,500 by itself. It may be part of a workable plan with eligible no-down-payment financing, documented gifts or approved assistance. Read buying with $5,000 down.

What credit score does Mike require?

Mike’s minimum is 580. The selected program may require a higher score, and approval depends on the complete file. See the credit-score guide.

Sources for the program examples

Fannie Mae HomeReady · HUD FHA down-payment guidance · CFPB cash and down-payment planning. Figures above are original arithmetic illustrations; get a current Loan Estimate for your transaction.