Michigan conventional mortgage loans allow first time home buyers to purchase their new home with only a 3% down payment. If you have owned a home in the past 3 years, the minimum down payment will be 5%. Conventional loans are the most common type of mortgage. Typically you will need a good credit history and a lower debt to income ratio.


  • 3% to 5% minimum down payment. Can be a gift from an immediate family member.
  • Seller can pay up to 3% of the sale price towards your closing costs.
  • Private Mortgage insurance (PMI) varies greatly depending on credit score and down payment.
  • Conventional loan limits are $726,200.
  • No geographic restrictions.

General Qualifying Requirements

  • Credit score minimum of 620. The lower the credit score the higher your rate and/or fees will be.
  • No previous mortgage loan late payment in the past 24 months.
  • No foreclosure in the past 7 years. Must have rebuilt credit.
  • No bankruptcies in the past 4 years. Must have rebuilt credit.
  • All court ordered judgments MUST be satisfied or have a satisfactory payment history.
  • Condominiums must meet Fannie Mae or Freddie Mac requirements.
Conventional Mortgage Loan

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