Michigan Mortgage Options
Below is a chart to help you compare the basics of Michigan mortgage options. You can click on the name of each loan to view more detailed information about that particular mortgage loan.
| Conventional | FHA | Rural Development | VA (veterans only) | |
| Minimum Down Payment | 5% | 3.5%* | 0% | 0% |
| Pre-Payment Penalty | No | No | No | No |
| Fixed or Adjustable | Both Available | Both Available | Fixed Only | Both Available |
| Private Mortgage Insurance (PMI) | Yes, with down payments less than 20%. Upfront and monthly available | Yes, 1% upfront and monthly | Yes, 2% upfront, and a low amount monthly | Yes, 2.15% to 3.3% upfront depending on usage, no monthly |
| Seller Paid Closing Costs | Up to 3% of the sale price | Up to 6% of the sale price | Up to 6% of the sale price | Up to 6% of the sale price |
| Credit Score Required | 620 | 580** | 600** | 620** |
| Bankruptcy Seasoning | 4 years | 2 years | 2 years | 2 years |
| Foreclosure Seasoning | 5 years, 3 years with extenuating circumstances | 3 years | 3 years | 3 years |
| Short Sale or Deed in Lieu Seasoning | 2 years (20% down), 4 years (10% down). | Immediately*** | Immediately*** | Immediately*** |
| Cash for Closing (All cash for closing MUST be proven, no cash or non-verified deposits can be used). | Must have at least 5% of your own money | All money needed for closing can be a gift from an immediate family member. | All money needed for closing can be a gift from an immediate family member. | All money needed for closing can be a gift from an immediate family member. |
*Requires 640 or higher credit score. **Additional documentation and fees may apply with credit scores below 660. ***If ALL payments were made on-time within the past 12 months of the short sale being completed.
