First-Time Homebuyer Update

🏡 First-Time Homebuyer Update – May 29, 2025

Navigating the housing market as a first-time buyer can be challenging, but recent developments offer promising opportunities:

📉 Mortgage Rates: A Slight Uptick

As of May 22, 2025, the average 30-year fixed mortgage rate stands at 6.89%, a modest increase from the previous week’s 6.86% . While rates remain elevated compared to historical lows, the market is showing signs of stabilization, providing a window for buyers to secure favorable terms.MarketWatch

💰 Down Payment Assistance Programs in Michigan

Michigan offers several programs to assist first-time homebuyers:

• First-Generation Down Payment Assistance Program: Provides up to $25,000 in deferred loans for down payment, closing costs, and prepaid expenses. This program is available statewide and aims to make homeownership more accessible for first-generation buyers .Bankrate+2Michigan+2Michigan+2

• MI 10K DPA Loan: Offers a zero-interest loan of up to $10,000 for down payment and closing costs. Repayment is deferred until the home is sold, refinanced, or no longer the primary residence .Bankrate+1Lake Michigan Credit Union+1

• National Faith Homebuyers Program: Provides up to $13,999 in down payment assistance, forgivable after five years, for eligible buyers in the metro Detroit area .Bankrate

🏠 Increased Purchase Price Limits

Effective May 1, 2025, the maximum purchase price for homes under the MI Home Loan program has increased to $544,233, up from $224,500. This change allows first-time buyers to consider a broader range of properties while still benefiting from state assistance programs .NerdWallet+2FOX 2 Detroit+2The Mortgage Reports+2

📝 Tips for First-Time Buyers

• Get Pre-Approved: Understanding your budget and securing pre-approval can strengthen your position in negotiations.Real Simple+1GoPrime+1

• Consult Professionals: Work with experienced real estate agents and mortgage advisors to navigate the buying process effectively.

• Explore Assistance Programs: Research and apply for state and local programs that can provide financial support.The Mortgage Reports

• Be Patient and Informed: Take the time to understand the market and make decisions that align with your long-term goals.

If you’re considering buying your first home and want personalized guidance, feel free to reach out. I’m here to help you navigate the process and find the best opportunities available