So you’ve found the one. No, not your soulmate, the house. Now comes the fun part: figuring out how to pay for it. Don’t stress, Lansing buyers have a ton of financing options, and we’re breaking it down Mid‑Michigan style.

1. FHA Loans

• Ideal for first-time buyers
• Lower credit score requirements (typically minimum 580, or 500 with 10% down)
• Only 3.5% down, and seller contributions to closing costs are allowed. Available on 1-4 unit properties.
• Financial help for seniors: Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

2. VA Loans

VA loans are mortgages offered through the U.S. Department of Veterans Affairs (VA) program, providing financial assistance to eligible veterans, service members, and their surviving spouses for home purchases, construction, or improvement. These loans are backed by the federal government but are typically financed by private lenders, offering potential benefits like no down payment, no mortgage insurance, and competitive interest rates. 

•  Exclusive to veterans, active duty, and select military spouses
• Zero down financing, no PMI, more flexible credit terms

3. USDA Loans

•  Great for homes just outside Lansing (e.g., DeWitt, Williamston)
• No down payment required for eligible rural areas
• Subsidized rates can start as low as 1%, with no down payment, designed to help low- to moderate-income households purchase, build, rehabilitate, or improve a home.

4. Conventional Loans

• Perfect for buyers with strong credit and steady income
• Down payments as low as 3% (via conforming loans)
• Avoid PMI if you put down 20% or more

5. MSHDA Programs (Through Michigan State Housing Development Authority)

Michigan-based homebuyers have access to powerful loan and grant options:

• MI Home Loan — A 30-year fixed-rate that works with FHA, VA, USDA, or conventional loans, and offers discounted interest rates for qualified borrowers
• MI 10K DPA Loan — Provides up to $10,000 in 0% second mortgage funds statewide, no monthly payment required, repayable when you move or refinance 
• First-Generation DPA — A new option offering up to $25,000 in down-payment assistance to buyers who are first-generation homeowners, with a minimum credit score of 640, a sale price cap of $224,500, and completion of a homebuyer education course. A huge boost for Lansing’s aspiring homeowners!
• Mortgage Credit Certificate (MCC) — A federal tax credit allowing you to claim up to 20% of your mortgage interest annually (max $2,000), offsetting tax liability

What Lenders Look At

A few key factors lenders assess:

• Credit score – Minimums vary: FHA (580+), conventional (620+), MSHDA (640+)
• Job history – Steady income improves approval odds
• Debt-to-income ratio – Lenders typically want ≤ 45% (MSHDA cap), conventional stricter
• Savings/assets – For closing costs, reserves, and qualifying for assistance

Lansing Buyer Tip: City + County DPA

Beyond state help, Lansing offers local down-payment assistance:

• City of Lansing’s program: DPA grants up to $14,999 for closing costs/down payment
• Ingham County and Capital Area Housing Partnership also provide educational resources and assistance for local homebuyers 

Pre‑Approval: Your First Power Move

Get pre-approved by a lender before you ever fall in love with a house. It demonstrates seriousness to sellers, defines a realistic price range, and makes your offer more competitive.