How to Buy a House in Michigan
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$259,702
Closing Costs
$10,072
3.88% of price
Property Tax Rate
1.15%
$2,750/yr median
Days on Market
38
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
0.75%
$3.75 per $500 (state)
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Key Facts About Buying in Michigan
- ✓Affordable housing especially outside Detroit metro
- ✓Higher transfer tax at 0.75%
- ✓Non-judicial foreclosure state
- ✓Strong MSHDA assistance programs
The Home Buying Process in Michigan
Buying a home in Michigan follows a 10-step process. Michigan does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in Michigan
MSHDA MI Home Loan
Below-market rate with down payment assistance
Up to $10,000 DPAIncome: Up to $101,520
Cost of Buying a Home in Michigan
| Down Payment (3.5% FHA) | $9,090 |
| Down Payment (20% Conventional) | $51,940 |
| Average Closing Costs | $10,072 |
| Transfer Tax | $1,948 |
| Annual Property Tax (est.) | $2,987/yr |
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Legal & Regulatory Details in Michigan
Homestead Exemption
Available
Up to $40,475
Licensing Authority
Michigan Department of Licensing and Regulatory Affairs
Michigan Real Estate Law Overview
| Conveyance Document | Warranty, quitclaim, covenant, trustee's and personal-representative's deeds |
| Security Instrument | Mortgage |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | No |
| Seller Disclosures | The Michigan Seller Disclosure Act requires a written statement covering known defects and the condition of appliances and systems. Sellers need not disclose psychological events or unknown issues, but must deliver and update the statement before closing. |
