State Buyer Guide
Down payment assistance, Michigan housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.
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The Michigan State Housing Development Authority (MSHDA) is your primary source for below-market mortgage rates and down payment assistance in Michigan. Programs are available through approved lenders — not directly through the HFA.
Competitive fixed-rate mortgages and DPA for first-time buyers statewide.
$10,000 in DPA in qualifying zip codes throughout Michigan.
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Compare Mortgage Rates →On a $245,000 home: approximately $6,125
Michigan charges a state transfer tax of $7.50 per $1,000 (0.75%) plus a county tax of $1.10 per $1,000 (0.11%), paid by the seller. First-time buyers may qualify for a state tax exemption on primary residences.
Michigan is a title-company state. An attorney is not required, though for FSBO purchases you should strongly consider hiring one to review the purchase agreement.
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Find an Inspector →While Michigan doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.
Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.
Browse Legal Guides →Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.
Get Legal Help →Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.
Browse Real Estate Forms →Michigan first-time buyers can access programs through the Michigan State Housing Development Authority (MSHDA) (https://www.michigan.gov/mshda), including the MSHDA MI Home Loan (Up to $7,500 as a 0% interest deferred loan) and the MI 10K DPA Loan ($10,000 as a 0% interest deferred second mortgage). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.
Closing costs in Michigan typically run 2.5% of the purchase price. Transfer tax: 0.75% state + 0.11% county. Michigan charges a state transfer tax of $7.50 per $1,000 (0.75%) plus a county tax of $1.10 per $1,000 (0.11%), paid by the seller. First-time buyers may qualify for a state tax exemption on primary residences.
Michigan is a title-company state. An attorney is not required, though for FSBO purchases you should strongly consider hiring one to review the purchase agreement.
The median home price in Michigan is approximately $245,000. Property taxes average 1.38% of assessed value annually.
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