State Guides/Michigan
MI

Michigan Home Buying Guide

Midwest Region · Non-Judicial Foreclosure State

Homestead Exemption

Key Facts at a Glance

Median Home Price
$235,000
Property Tax Rate
1.64%
Transfer Tax
0.75%
Attorney Required
No
Foreclosure Type
Non-Judicial

What Makes Michigan Unique

MSHDA offers $10,000 DPA statewide — no income limits in targeted areas

Homestead exemption reduces assessed value by 18 mills

Detroit area offers exceptional affordability

First-Time Buyer Programs in Michigan

1

MSHDA MI Home Loan

Contact your state housing finance agency for current eligibility and rates

2

MSHDA Down Payment Assistance $10K

Contact your state housing finance agency for current eligibility and rates

3

MSHDA Step Forward Down Payment

Contact your state housing finance agency for current eligibility and rates

Program availability, income limits, and interest rates change frequently. Verify current terms with your lender or state housing finance agency.

Closing Costs in Michigan

1.2%
Avg Closing Costs
of purchase price
$2,820
Estimated Closing Costs
on median-priced home
0.75%
Transfer Tax
may be split with seller

Attorney at Closing

Attorney Not Required

Michigan does not require an attorney at closing. A title company typically handles the transaction. Consider hiring one anyway for complex deals.

Local Tips for Michigan Buyers

1

MSHDA $10K DPA requires repayment at sale/refinance.

2

Michigan transfer tax is split state + county.

3

Detroit and surrounding markets offer among best cash flow for investors.

Estimated Annual Ownership Cost in Michigan

Based on the median home price of $235,000 with a 10% down payment and 7% mortgage rate.

Annual Mortgage Payment$16,878
Annual Property Taxes$3,854
Homeowners Insurance (est.)$1,175
Maintenance (est. 1%/yr)$2,350

Ready to Calculate Your Numbers?

Use our free calculators to estimate your monthly payment, affordability, and closing costs in Michigan.