The Best Place to Get a Home Loan!
Conventional Mortgage
Conventional Home Loans
Michigan Conventional Mortgage Loans: Complete 2025 Guide
Michigan conventional mortgages are one of the most popular home loan options in 2025, providing Michigan homebuyers with flexibility and competitive terms. This comprehensive guide covers everything you need to know about conventional mortgage loans in Michigan, including how they compare to other loan options like FHA loans.
Why Choose a Michigan Conventional Mortgage in 2025?
A Michigan conventional mortgage in 2025 is a popular choice for many homebuyers due to its flexibility and favorable terms. With options ranging from low down payments to competitive interest rates, this type of home loan can be an excellent choice for Michigan borrowers who meet the eligibility criteria. Conventional mortgages typically require higher credit scores and a stable income, but they offer long-term benefits for qualified Michigan residents.
Top Benefits of Conventional Home Loans in Michigan
- Lower Interest Rates: Conventional loans often come with lower interest rates compared to government-backed loans, especially for those with strong credit scores.
- No PMI with 20% Down: Avoid private mortgage insurance (PMI) by putting down 20% on your home, reducing your overall monthly payments.
- Flexible Loan Terms: Choose from a variety of term lengths (15, 20, 30 years) to suit your financial goals.
- Higher Loan Limits: Conventional loans can offer higher loan limits, which is ideal for purchasing more expensive homes.
By clicking "Submit", you consent to receive calls and texts at the number you provided, including marketing by autodialer and prerecorded and artificial voice, and email, from Riverbank Finance LLC about your inquiry and other home-related matters, but not as a condition of any purchase; this applies regardless of whether you check, or leave un-checked, any box above. You also agree to our Privacy Policy and Terms of Use regarding the information relating to you. Msg/data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. This no obligation inquiry does not constitute a mortgage application. To apply now or get immediate assistance, call us at 1-800-555-2098.
Michigan Conventional Loan Requirements & Eligibility (2025)
To qualify for a Michigan conventional mortgage in 2025, the following criteria are typically required:
- Credit Score: Generally, a score of 620 or higher is needed, with better rates available for those with scores over 740.
- Down Payment: Depending on the loan program, the minimum down payment can be as low as 3%, though putting down 20% eliminates PMI.
- Income Verification: Lenders will assess your income to ensure you can afford the mortgage payments. This includes your salary, any additional income, and debt-to-income ratio.
Conventional Mortgage Down Payment Requirements
A conventional mortgage down payment requirement is typically between 3% and 20% of the purchase price. The standard at most mortgage companies is 5% of the purchase price for the down payment requirement however this number may vary from bank to bank.
At Riverbank Finance, we allow for as little as a 3% down payment on a conventional mortgage to keep cash in your pocket. The Freddie Mac Home Possible Mortgage may be a great fit for first time home buyers with little reserves. Many conventional mortgage programs have the best interest rates with 5% down. Many home buyers choose a 20% down payment for a conventional mortgage to avoid PMI.
Michigan Conventional Mortgage Down Payment Options for 2025
How to Apply for a Conventional Home Loan in Michigan
- Check Your Credit Score: Start by checking your credit score to ensure it meets the required standards.
- Calculate Your Budget: Use a mortgage calculator to get an estimate of your monthly payments and understand what you can afford.
- Contact a Mortgage Lender: Reach out to Riverbank Finance to get personalized advice and a pre-approval letter.
- Submit Your Application: Provide necessary documents, such as proof of income, employment history, and other financial details.
Michigan Conventional vs. FHA Loans: Complete Comparison Guide
Both conventional and FHA loans offer distinct benefits. While conventional loans are ideal for borrowers with stronger credit and a larger down payment, FHA loans are more forgiving and cater to first-time homebuyers or those with less-than-perfect credit. Here’s a quick comparison:
| Feature | Conventional Mortgage | FHA Loan |
|---|---|---|
| Down Payment | As low as 3% | As low as 3.5% |
| Credit Score Requirement | 620+ | 580+ |
| Private Mortgage Insurance (PMI) | Required if down payment is less than 20% | Required for all FHA loans |
| Loan Limits | Higher than FHA | Lower than conventional loans |
Conventional Mortgage Calculator
Curious about what your payments would be if you used a Conventional Loan to buy a home? Use our Conventional Mortgage Calculator to estimate total monthly payments. Unlike, other online conventional loan calculators, ours inclues principal, interest, taxes, insurance and PMI estimates to give you a realistic estimated payment.
How to Avoid PMI on Michigan Conventional Loans
Private Mortgage Insurance (PMI) is a common feature of many conventional loans when your down payment is less than 20%. To avoid PMI, consider the following options:
- Make a Larger Down Payment: Putting down 20% or more can help you avoid PMI altogether.
- Request Lender-Paid PMI: In some cases, lenders may offer PMI at no cost to the borrower, but this typically results in a slightly higher interest rate.
- Consider a Piggyback Loan: A second mortgage can be used to cover part of your down payment, helping you avoid PMI.
2025 Michigan Conventional Loan Limits by County
The 2025 maximum conventional loan amounts in Michigan vary by county and property type. For most Michigan counties, the conventional conforming loan limit is set at $806,500 for single-family homes. High-cost areas like Alaska and Hawaii have higher limits up to $1,209,750, but Michigan maintains standard conforming loan limits across all counties.
The typical maximum Conventional Mortgage amount available in any county is $806,500. For more information on conventional loan limits visit Fannie Mae's Loan Limit chart: Conventional Loan Limits. If your home loan is above $715,000 then it would be considered a Jumbo Loan.
Multi-unit homes have larger conventional loan limits
Michigan Conventional Loan Limits
Michigan does not have any high cost areas so the conventional loan limit is set at $806,500 for all counties. The following link has a complete list of 2025 Conventional Loan Limits.
Michigan Conventional Mortgage FAQs (2025 Updates)
Get answers to the most common questions about Michigan conventional mortgages in 2025, including information about loan limits, refinancing options, and application requirements. Our comprehensive FAQ section helps Michigan homebuyers understand the latest updates and requirements for conventional home loans.
What are the maximum loan limits for conventional mortgages in Michigan?
The 2025 loan limit for a conventional mortgage in Michigan is set at $806,500, with variations for multi-unit properties. If you are looking for a loan above this amount, you may need to consider a jumbo loan.
Can I refinance with a conventional mortgage?
Yes! A conventional mortgage can also be used for refinancing. You can refinance your current loan to lower your interest rate, change the term of your loan, or even access cash for home improvements.
2025 Loan Limits
For the year 2025, conventional loan limits are expected to rise in many areas. This means higher borrowing amounts, which can be particularly helpful for those looking to purchase homes in higher-priced markets. Make sure to check with your lender for the updated limits in your area.
How to Apply for a Mortgage
- Start by contacting a mortgage lender or use an online mortgage application to get pre-approved.
- Submit necessary documents such as income verification, tax returns, and credit history.
- After approval, work with your lender to finalize the loan terms and proceed with purchasing your home.
Contact Us
If you're ready to apply for a mortgage or would like more information on Michigan conventional loans, call us at 800-555-2098 or apply online today!. Our team is here to guide you through the process and help you secure the best loan for your needs.