You've got a steady job. 
Your credit is decent. 
You're tired of watching rent payments disappear every month. 
There's just one problem. 
You don't have $40,000 sitting in the bank. 
So you assume buying a home in Southeast Michigan is out of reach. 
Here's what I want you to understand: 
You might be financially ready to buy a home without realizing it. 
The biggest mistake isn't having limited savings. It's assuming you know how much money you need 
before you've explored your financing options. 
Let's break down what buyers should actually be looking at. 

But here's the reality: 
● Conventional financing: Certain programs allow down payments as low as 3%. 
● FHA financing: Qualified borrowers may purchase with as little as 3.5% down. 
● VA financing: Eligible military borrowers may qualify for no down payment. 
● USDA financing: Eligible buyers purchasing qualifying properties may qualify for 100% 
financing. 

On that same $300,000 home, a 3% down payment is just $9,000. That's a $51,000 difference in upfront down payment requirements. Now, that doesn't mean the lower-down-payment mortgage is automatically the better financial 
choice. Mortgage insurance, interest rates, loan costs, and long-term affordability all matter. But it does mean you shouldn't eliminate homeownership simply because you haven't saved 20%. 

Here's something many buyers overlook. 

Michigan offers down payment assistance through the Michigan State Housing Development Authority, better known as MSHDA. Its MI 10K Down Payment Assistance program can provide eligible buyers with up to $10,000 toward 
their down payment, closing costs, and prepaid expenses. But there's an important distinction. 
This isn't automatically free money. The assistance is an interest-free loan with no monthly payments. Repayment is deferred until certain events, including selling, refinancing, paying off the primary mortgage, or no longer 
occupying the property as your primary residence. Buyers must qualify for an accompanying MSHDA MI Home Loan, meet applicable income, credit, purchase-price, and other requirements, and complete homebuyer education. Applications go through participating lenders. That makes it an opportunity worth investigating—not a guaranteed $10,000 check. For a closer comparison of assistance options, read our earlier article, The Low-Down Showdown: Supreme Dream vs. MSHDA. 

Here's where financing strategy gets interesting. 
Consider a hypothetical buyer purchasing a $300,000 home. 

 

        Purchase price: $300,000

        3% down payment: $9,000

        Estimated closing costs and prepaids: $8,000

 

Now imagine this buyer qualifies for a compatible MSHDA MI Home Loan and receives the full 
$10,000 in down payment assistance.

 

        Estimated cash needed: $17,000

        Hypothetical MSHDA assistance: -$10,000

        Remaining cash needed: $7,000

 

Suddenly, a $17,000 cash requirement could become $7,000. 

That's the power of understanding your options before assuming you can't buy. This example is illustrative, not a loan approval or a guarantee of assistance. Actual closing costs, required buyer contributions, program compatibility, and funds needed will vary. Any assistance loan remains subject to its repayment terms. 

 

Down payment assistance isn't the only strategy available. 

Gift funds: Depending on the mortgage program, eligible family members and certain other qualifying donors may help with a down payment or closing costs. These funds generally must be properly documented, and a legitimate gift cannot require repayment. 

Seller concessions: A seller may agree to contribute toward allowable buyer closing costs. 
For example, negotiating a $5,000 seller credit could reduce the cash you need for eligible closing expenses. But seller concessions generally cannot fund your required down payment on a conventional mortgage, and contribution limits apply.

Here's the difference: A seller credit can help with closing costs, while an eligible gift or down payment assistance program may help with the actual down payment. Knowing how these pieces work together can change your buying strategy.

 

Too many buyers ask: 

"How much money do I need to save before I can buy?" 

I encourage a better question: 

Those are two completely different conversations. 

You may discover that you qualify for a low-down-payment conventional loan. You might benefit from FHA financing. You might have VA or USDA eligibility you haven't explored. Or the smartest decision might be saving a little longer to improve your financial position. The objective isn't to buy a home with the least money possible.

It's to buy a home using financing that makes sense today and doesn't create financial problems 
tomorrow.

I'm Jason Miller with Supreme Lending, and I believe buyers deserve to understand their options 
before deciding homeownership is out of reach. Whether you're purchasing your first home, moving up, or returning to homeownership, let's look at your actual numbers. 

Visit Jason Miller at Supreme Lending to explore financing options and get started. 
You can also call me directly at (248) 444-8774. 
Because being short on cash doesn't always mean you're short on possibilities. 
Jason Miller | Supreme Lending | NMLS #2616621