Cash Needed to Buy a $250K, $300K or $400K Michigan Home
Wondering whether your savings are enough for the home you have in mind? Start with the down payment, then add the other costs of buying—and the money you want left afterward. Here’s how that looks at $250,000, $300,000 and $400,000.
The numbers below are planning examples, not loan quotes. Your actual cash needed depends on the property, loan and agreed credits.
What changes when the price goes up?
Start with the price, then choose a down payment scenario that is actually available to you. HUD describes FHA down payments as low as 3.5% for eligible buyers. Fannie Mae offers eligible 97% financing options, which can mean 3% down. Neither option applies to every borrower or property.
| Home price | 3% illustration | 3.5% illustration | 5% illustration |
|---|---|---|---|
| $250,000 | $7,500 | $8,750 | $12,500 |
| $300,000 | $9,000 | $10,500 | $15,000 |
| $400,000 | $12,000 | $14,000 | $20,000 |
Moving from $250,000 to $400,000 adds $4,500 to a 3% down payment, $5,250 to a 3.5% down payment, or $7,500 to a 5% down payment. That is only the change in down payment; the rest of the budget still needs its own estimate.
The 3%, 3.5% and 5% columns are different down payment assumptions, not interchangeable loan offers. Mortgage insurance, financed premiums, credit, property eligibility and underwriting still matter.
What else belongs in your savings plan?
- Purchase contribution: the selected down payment and any appraisal-gap amount you agree to fund.
- Transaction charges: lender and settlement charges, appraisal, recording and other applicable costs. Ask who pays each item under your contract.
- Prepaids and escrow: insurance, interest and initial tax/insurance deposits. Closing date and actual bills affect these amounts.
- Money kept outside closing: inspection, moving, repairs and your emergency cushion. Lender-required reserves may also apply.
Read the Michigan closing-cost breakdown and compare your itemized estimate with the CFPB Closing Disclosure guide.
Already paid a deposit? Count it once.
Hypothetical arithmetic, not a Michigan fee average or lender quote: assume $15,000 down, $8,000 in itemized closing costs/prepaids/escrow, $3,000 earnest money already paid, and $4,000 of negotiated credits that the lender confirms can all be used.
$15,000 + $8,000 − $3,000 − $4,000 = $16,000 still due at closing. The earlier $3,000 deposit is part of your contribution, so total purchase funds paid by you are $19,000, not $16,000. If a $500 inspection is outside these figures and you want $6,000 left afterward, the complete savings plan is $25,500.
Focused on that middle price? The dedicated $300,000 cash-to-close guide walks through that purchase in more detail.
Earnest money is an advance payment credited at settlement when the purchase closes, not a new discount. An appraisal paid before closing must also be accounted for once. Your actual disclosure controls the final reconciliation.
Same price. Different cash needed. Why?
Different tax bills, tax prorations, insurance quotes, association charges and closing dates change the estimate. The seller's tax history may not predict your future bill after Michigan taxable-value uncapping. Ask which tax assumptions are being used and what changes after purchase.
Seller credits must be negotiated and permitted under the selected program; they cannot automatically fund every item. Lender credits may involve a different interest rate. Assistance has separate eligibility and possible repayment terms. Compare FHA and conventional structures using the same property and timing.
How much do you want left after the move?
Bring a general target price, community, comfortable payment and amount you want left in savings. I want to distinguish money available now, money already paid and money you need to retain. We can then compare a smaller down payment with preserving cash, rather than assuming the largest down payment is always best.
Use the Michigan first-time buyer guide and monthly affordability calculator together. The calculator does not replace an itemized cash-to-close estimate.
Where does credit fit?
My minimum mortgage credit score is 580. That is a starting point for a conversation, not an approval. Some programs and lenders require more. Income, debts, savings and the property also matter. See the Michigan credit-score guide before assuming a down-payment option is available to you.
About Mike Alkema
Mike Alkema, Mortgage Loan Originator | Leeward Point Mortgage LLC. Grand Rapids, Michigan · NMLS #642953. Learn about Mike.
Want to talk through the cash you may need?
Tell me the price range you’re considering and what you would like to keep in savings after closing. We can start there.
Discuss my cash-to-close plan. You don’t need to have everything figured out before we talk.
Start with a general question. I’ll explain the secure process if we need financial documents.
Educational and advertising information, not a commitment to lend. Examples are hypothetical, not client results or quotes. Loan programs, rates, terms and availability are subject to change and borrower, property and underwriting approval. Not all applicants qualify. Individual results vary. Mike Alkema, NMLS #642953. Leeward Point Mortgage LLC, NMLS #1823590. Equal Housing Opportunity. Not affiliated with or endorsed by a government agency.