Buying a home in Michigan: where to start
A mortgage is the largest financial commitment most people will ever make, and the difference between a smooth closing and a stressful one usually comes down to two things: choosing the right loan program for your situation, and working with a broker who can shop multiple lenders on your behalf.
Rapid Home Loans is a licensed Michigan mortgage broker (NMLS# 2336339) headquartered in Dearborn, MI. We're not a bank — we work with a panel of wholesale lenders to compare rates and programs and find the one that fits your goals, credit, and timeline. That means more options for you and, in most cases, a lower rate than going directly to a single lender.
Who can qualify for a purchase mortgage?
Eligibility depends on the loan program, but the four factors every lender evaluates are the same:
- Credit score. FHA loans can go as low as 580 (or 500 with 10% down). Conventional loans typically require 620+. Better credit = better rate.
- Debt-to-income ratio (DTI). Most programs cap total monthly debt at 43–50% of gross monthly income, including the new mortgage payment.
- Down payment. 0% for VA and USDA, 3.5% for FHA, 3% for some conventional first-time buyer programs, 5–20% for standard conventional.
- Verifiable income. W-2, 1099, self-employed (bank statement loans available), retirement income, or rental income — we can structure around almost any documented source.
If any of those four are tight, that's exactly the conversation to have with us. We see borrower scenarios our wholesale lenders accept every day that a retail bank would decline outright.
Loan programs we offer for purchase
Conventional
Backed by Fannie Mae or Freddie Mac. As little as 3% down for first-time buyers. Best for borrowers with 620+ credit and stable income. Up to $806,500 loan amount in Wayne County for 2026.
FHA
Government-insured, designed for buyers with lower credit scores or smaller down payments. 3.5% down with 580+ credit. FHA loan limits and details for Michigan →
VA
For active-duty service members, veterans, and qualifying surviving spouses. Zero down payment, no PMI, competitive rates. Funding fee may apply.
USDA
Zero-down loans for buyers in eligible rural and suburban areas. Income limits apply. Many parts of Michigan outside metro Detroit qualify.
Jumbo
For loan amounts above the conforming limit ($806,500 in Wayne County for 2026). Stricter credit and reserve requirements. Rates vary based on loan size and credit.
Bank Statement / DSCR
Self-employed or investor? We use 12–24 months of bank statements (instead of tax returns) or property cash flow (DSCR) to qualify. Higher rates, more flexibility.
The purchase process, step by step
- Pre-approval (1–3 days). Apply online or call us. We pull credit, verify income, and issue a written pre-approval letter you can use to make offers.
- Find your home. Work with your real-estate agent. Your pre-approval letter sets the price ceiling.
- Submit your offer. Once accepted, you have an executed purchase agreement.
- Lock your rate (optional). Decide whether to lock the rate now or float. We'll explain the tradeoffs.
- Underwriting (1–3 weeks). The lender verifies everything: appraisal, title, employment, assets. We handle the back-and-forth so you don't have to.
- Closing (1–2 hours). You sign the loan documents, transfer down payment and closing costs, and the home is yours.
Most Michigan purchases close in 21–35 days from accepted offer. Our team has closed loans in as few as 14 days when the file is clean.
Michigan-specific notes
First-time homebuyer programs. The Michigan State Housing Development Authority (MSHDA) offers down payment assistance up to $10,000 and the MI Home Loan program for income-eligible borrowers. See our Michigan first-time buyer guide →
Property taxes. Wayne County and the City of Dearborn assess property taxes that get rolled into your monthly escrow. We'll show you the exact monthly payment including taxes and insurance — not just principal and interest.
Homeowners insurance. Required by lenders. We'll connect you with shopping resources if you don't already have a policy.
Frequently asked questions
How much can I afford?
A common rule of thumb is that your total monthly housing payment (principal, interest, taxes, insurance, and HOA if applicable) should be at or below 28% of your gross monthly income. Total monthly debt should be at or below 43–50%. Get a personalized number by getting pre-approved — it's free and takes less than 24 hours.
What's the difference between pre-qualified and pre-approved?
Pre-qualified is an estimate based on stated information. Pre-approved means we've actually pulled your credit, verified your income, and underwritten the file — so a seller takes the offer seriously. We always issue pre-approval letters, not pre-qualifications.
How much will closing costs be?
Typically 2–5% of the loan amount in Michigan. Includes lender fees, title insurance, appraisal, prepaid taxes and insurance, and recording fees. Sellers can sometimes pay part of these as a concession negotiated into the purchase agreement.
Do you charge broker fees?
Mortgage brokers are paid one of two ways: lender-paid (the lender pays us a commission, included in the rate) or borrower-paid (you pay us directly, usually with a slightly lower rate). We'll show you both options on every loan.
Can I get a mortgage if I'm self-employed?
Yes. Conventional loans typically require two years of tax returns. We also offer bank statement loans (12–24 months of statements, no tax returns required) for self-employed borrowers whose tax filings don't show their full income.
Ready to start?
The pre-approval is free, takes about 15 minutes, and there's no commitment. Reach out and we'll get you a written pre-approval letter you can use to shop for homes with confidence.
