How to buy a home in Michigan

If you're looking for an affordable state to call home, buying a house in Michigan might fit the bill.

The median sale price for buying a house in Michigan was $273,900 in October 2025. That's more than 37% below the national average of $439,917. At the same time, demand is increasing. The median sale price was up 4.2% over the year before, and 11,339 homes were sold in October – a 2.8% increase year over year.

Many variables determine how affordable a home is, so it's important to understand how to buy a home in Michigan.

Affording a home in Michigan

When figuring out how much house you can afford, it’s important to factor in your income, existing debts, and any other financial obligations. Current mortgage interest rates in Michigan can also play a significant role.

You can quickly estimate if a home is within reach, given your current financial situation, with the home affordability calculator.

To find a home you can afford, it's important to assess your financial profile. How much cash you have for a down payment and closing costs, your current debt load, mortgage rates, the type of mortgage you apply for, property tax rates, and homeowners insurance costs all affect affordability.

The Rocket Mortgage^® home affordability calculator allows you to estimate what you can afford based on your income, where you’re looking to buy, how much cash you have saved, your monthly debt payments, and your approximate credit score.

Housing market trends in Michigan

According to Redfin, the median sale price in Michigan for October 2025 is $273,900, an increase of 4.2% year over year.

Home prices tend to peak in August and September and are typically lowest in February.

Redfin also reports 42,252 homes for sale in Michigan as of October 2025, an increase of 8.4% year over year. That includes 13,127 newly listed homes.

Some 27.9% of homes sold above list price, which is down 2.9 points from the year before. Just over a third of homes had price drops, at 34.7%, an increase of 2.9 points over the previous year.

Homes stay on the market for an average of 34 days, which is less than the national average of 51 days.

Finding a mortgage broker in Michigan

An effective way to shop for mortgages is to find a mortgage broker. The broker will take your financial information and present the best available loan options. A broker also can help you navigate the underwriting and mortgage approval process and keep you updated with progress and due dates as your closing date nears.

Finding a real estate agent in Michigan

While you can do quite a bit of home searching yourself online and visiting open houses, a real estate agent can play a significant role in helping you find a home and making an offer.

Agents help you stay apprised of new listings added to the multiple listing service, arrange home tours, help you negotiate the best deal, manage paperwork for the transaction, and walk you through the closing process.

If you don’t already have an agent, getting a referral from a trusted friend or relative can be a good place to start. Talk with a few agents local to where you're looking to buy.

An experienced agent will know the town and its neighborhoods, which can vary tremendously, even if they are just a few blocks apart.

Home buying assistance programs in Michigan

If you're buying a house in Michigan, federal and state programs can help you afford a home. According to the U.S. Department of Housing and Urban Development (HUD), a first-time home buyer is someone who has not owned a principal residence in the previous 3 years.

Michigan has its own first-time home buyer programs to assist with a down payment and closing costs.

MI Home Loan

If you haven’t owned a home in the last three years, or if you’re a repeat buyer in designated areas of Michigan, you may qualify for a MI Home Loan at below-market interest if you work with a participating lender.

You’ll need to meet the minimum credit score of 640 and be within a household income range, which varies based on the size of your family and where you’re buying. As of May 2025, the maximum sale price for this program is $544,233.

MI 10K DPA Loan

The Michigan State Housing Development Authority provides below-market interest rates to fund home mortgages and home improvement loans for qualified buyers.

If you're a recipient of an MHSDA MI Home Loan, you may also be eligible for the MI 10K Down Payment Assistance Program. This provides an interest-free loan, with no required monthly payments, to low- and moderate-income buyers with up to $10,000 toward down payment, closing costs, and prepaid expenses. You'll repay the loan when you pay off your mortgage or sell the home.

Grand Rapids Homebuyer Assistance Fund

The city of Grand Rapids offers down payment assistance through its Homebuyer Assistance Fund. You’ll have to agree to live in the house for at least 5 years, meet income requirements, and get mortgage preapproval from a participating lender. Grants of up to $7,500 are available to qualified individuals.

Home buying process in Michigan

Once you’ve decided to buy a house in Michigan, it's important to learn how the home buying process works.

Here are some of the key steps to buying a home in Michigan:

• Get mortgage preapproval. When you apply for mortgage preapproval, your lender will review some of your financial information and estimate how much it expects you can afford to borrow. This helps you set a budget for a home, and shows agents and sellers you're ready to buy.
• Find a real estate agent. An experienced real estate agent can help you find affordable homes that meet your needs, make an offer on the home, and prepare for closing.
• Make an offer. Your real estate agent can help you make an offer that's realistic and competitive. Once your offer's accepted, you and the seller will sign a purchase and sale agreement to govern the sale.
• Get a home inspection. This involves a home inspector examining the home and reporting on its condition. If you included a home inspection contingency in your purchase and sale agreement, you can re-negotiate the terms or cancel the sale if the home needs major repairs or is unsafe to live in.
• Close on your home. The closing is when all parties involved in the sale sign the paperwork to finalize the sale. You'll need to provide your down payment and pay closing costs. At the end, you'll take legal ownership of the home.

Bottom line: Buying a home in Michigan can be affordable

Home prices in Michigan are more affordable than the national average. To buy one, you'll need to save enough for a down payment and closing costs. A real estate agent and home buyer assistance programs can help.

If you’re looking to get started buying a home in Michigan, take the first step with a mortgage application today with Rocket Mortgage.