Buy your first home in Metro Detroit.

What to know before you buy your first home

• How much you actually need up front

  The 20% down payment is a myth for most first-time buyers. Conventional loans start at 3% down, and FHA loans at 3.5%. On a $230,000 home in Madison Heights, that is about $8,000 to $8,500 down, not $46,000. Michigan also runs the MSHDA program, which can put up to $10,000 toward a down payment for buyers who qualify. Plan for closing costs on top, usually 2% to 5% of the price. Try our mortgage calculator to see what your monthly payment could look like.

• Get pre-approved before you fall in love with a house

  Pre-approval is a lender telling you, in writing, how much they will lend you and at what rate. It shows you a real budget instead of a guess, and it makes your offer credible when you find the one. In a market where good starter homes move fast, sellers take a pre-approved buyer seriously. We can connect you with local lenders the day you are ready.

• What your money buys right now

  A 3-bedroom starter home in the inner-ring Woodward suburbs currently runs from about $175,000 in Hazel Park to the mid $300,000s in Berkley. Madison Heights and Oak Park sit in the low $200,000s, Ferndale around $260,000. Your agent job is to match your budget to the right neighborhood, not push you to the top of it.

• Who pays your agent

  This changed in 2024, so it is worth understanding. You sign a short agreement with your buyer agent up front that spells out how they are paid. In many deals the seller still covers some or all of that cost, and where they do not, your agent tells you before you ever write an offer. No surprises at the closing table.

• The costs beyond the price

  Budget for a home inspection (a few hundred dollars, and always worth it), an appraisal your lender orders, homeowner insurance, and Michigan property taxes. Your agent and lender give you a full estimate before you commit, so the monthly number you sign up for is the real one.

• How long it takes

  Looking is on your timeline. Once you are under contract on a home, closing usually takes 30 to 45 days. Start to keys, most first-time buyers move through it in a couple of months.

How buying your first home works

What a first home costs across Metro Detroit

Common first-time buyer questions

• How much do I need to buy my first home in Metro Detroit?

  Less than most people expect. Conventional loans start at 3% down and FHA loans at 3.5%, so on a $230,000 home that is roughly $8,000 to $8,500, plus 2% to 5% in closing costs. Michigan MSHDA can add up to $10,000 in down payment help for buyers who qualify. We connect you with a lender who gives you exact numbers for your situation.

• Do I need perfect credit to buy a house?

  No. Many first-time buyers qualify with credit scores well below what they assume is required, especially with FHA loans. The best first step is a quick, no-obligation call with a lender who can tell you where you stand. We can introduce you to one.

• Do I have to pay my agent as a buyer?

  You sign a short agreement up front that spells out how your buyer agent is paid. In many deals the seller still covers some or all of it, and where they do not, we tell you before you write an offer. You will never be surprised by that number at closing.

• How long does it take to buy a home?

  Looking is on your timeline. Once your offer is accepted, closing usually takes 30 to 45 days. Most first-time buyers go from pre-approval to keys in about two months.

• What can I actually afford right now?

  That depends on your pre-approval, but a 3-bedroom starter home in the inner-ring suburbs currently runs from about $175,000 in Hazel Park to the mid $300,000s in Berkley. Get pre-approved and we will match your budget to the right neighborhood.

• What extra costs should I plan for besides the price?

  A home inspection, your lender appraisal, homeowner insurance, and Michigan property taxes. Your agent and lender give you a full monthly estimate before you commit, so there are no surprises.