When buyers begin exploring homes and recreational properties in Northern Michigan, one of the first things they ask is: “What will my down payment need to be?” The answer depends on several factors—primarily your loan type and financing structure.
Below is a simple breakdown based on Shawn Huston’s video explanation.
Down Payments Depend on the Loan Program
Different mortgages come with different down-payment requirements:
Conventional Loans
- Primary residence: Some lender programs may allow a down payment as low as around 3.5%, depending on eligibility.
- Second homes & investment properties: Plan for approximately 20% down, which is a common requirement for these types of purchases.
Zero-Down Loan Options
Certain programs—like FHA, Rural Development (RD), and VA loans—may allow 0% down for qualified buyers. While the down payment may be zero, standard closing costs still apply.
Can Closing Costs Be Included in the Purchase?
In some situations, buyers can request seller concessions to help cover closing expenses. These may involve:
- A set amount (such as $4,000 or $6,000)
- Or a percentage of the purchase price (often 3%–6%)
When concessions are used, those costs become part of the financed amount. The seller credits those funds back to the buyer at closing.
Work With a Lender to Determine Your Exact Numbers
Your down payment will ultimately be determined by:
- Your loan product
- Your financial profile
- Your lender’s specific requirements
At Huston Real Estate, we help you connect with trusted lending partners who can outline the best options for your goals—whether you’re purchasing your first home or securing an Up North getaway.
