Exploring Mortgage Options for Homebuyers in Michigan and Metropolitan Detroit

Mortgage Word Written In Wooden CubeWhen it comes to obtaining a mortgage for your dream home in Michigan and Metropolitan Detroit, it’s essential to understand the various mortgage options available to cater to your specific financial needs. Each homebuyer’s circumstances are unique, and certain loan programs may be better suited for one individual than another. Let’s take a closer look at the overview of each option so you can make a more educated decision on which loan program is best for you.


  • Ideal for borrowers with credit scores above 700.
  • Requires a minimum 3% down payment for first-time homebuyers, but 5% will be necessary for those who have been on title to a home in the past 3 years.
  • Carries a monthly mortgage insurance premium (PMI) if the down payment is less than 20%.
  • No funding fee in closing costs to insure the loan.
  • Some lenders may consider credit scores as low as 620.
  • Fixed and adjustable rates are available, and down payments can be in the form of a gift.
  • Myth: Contrary to popular belief, obtaining a new conventional mortgage after bankruptcy may only require a waiting period of 4 years if a previous mortgage was included in the bankruptcy. For foreclosures not included in bankruptcy, the waiting period is 7 years.


  • Allows home purchase with a 3.5% down payment.
  • More lenient on credit history and debt-to-income ratios.
  • Suitable for borrowers with past credit blemishes and challenges to provide a substantial down payment.
  • Gift funds and non-owners occupying co-borrowers are allowed.
  • Up to 6% of the selling price can be negotiated for seller contributions or concessions.


  • Designed to help middle-income borrowers purchase rural housing.
  • Offers 100% financing up to the appraised value with monthly mortgage insurance (PMI).
  • Allows closing costs and prepaid expenses to be rolled into the mortgage under certain conditions.
  • Popular for those with a good work history and strong credit who lack significant reserves.



  • Exclusive program for Veterans.
  • Like the FHA program but requires no down payment.
  • Seller may pay closing costs and prepaid items, and gift funds are allowed.
  • No monthly PMI required, providing cost savings.
  • Veterans with a 100% service-related disability are exempt from paying property taxes in Michigan and many other States.

These are the main mortgage options available to homebuyers in Michigan and Metropolitan Detroit. Each program caters to specific needs, and it’s essential to choose the one that aligns best with your financial situation. If you’re ready to buy a house and need a mortgage, our team would be delighted to assist you. Leave a comment or click here to find the most convenient way to contact us and start your journey towards homeownership!


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NMLS# 533706

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Ross Mortgage Corporation


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Marc Edelstein - Ross Mortgage Corporation
7151 N Main
Clarkston, MI 48346

(248) 658-2643