To qualify for a conventional loan in Michigan, you generally need a credit score of 620 or higher, a stable income with at least two years of employment history, and a debt-to-income ratio below 45%. Down payment requirements range from 3% to 20%, and Michigan conforming loan limits determine the maximum loan amount before you need a jumbo loan.

Conforming loan limits in Michigan are set annually by the Federal Housing Finance Agency and vary by county. Most counties follow the baseline limit, while high-cost areas may have higher caps. Loans exceeding these limits in Michigan are classified as jumbo loans and typically require higher credit scores and larger down payments.

Yes, you can avoid private mortgage insurance on a conventional loan in Michigan by making a down payment of 20% or more. Alternatively, some lenders offer lender-paid PMI options with slightly higher interest rates. Once you reach 20% equity in your Michigan home, you can request PMI cancellation, and it automatically terminates at 22% equity.

Conventional loans are one of the most common financing options for investment properties in Michigan, as government-backed loans like FHA and VA require owner occupancy. You will need a larger down payment of 15-25% for investment properties and should expect interest rates 0.5-0.75% higher than primary residence rates. Michigan rental markets can make this a worthwhile investment despite the stricter requirements.

Conventional loan rates in Michigan are influenced by national market conditions, your credit score, down payment, and the specific lender. Borrowers with credit scores above 740 and 20% down typically receive the best rates. NMHL can help you compare conventional rates from multiple lenders in Michigan to ensure you get the most competitive offer.

Yes, conventional loans in Michigan allow gift funds from family members for the down payment, though requirements vary based on your down payment amount. If you put less than 20% down, you may need to contribute some of your own funds depending on the loan program. A gift letter documenting the source and confirming no repayment is required for all gift funds.