How Much Money Do I Need to Buy a House in Washtenaw County, Michigan?
The amount of money you need to buy a house in Washtenaw County depends on the home price, your mortgage program, down payment, closing costs and any assistance you qualify for. You do not automatically need 20% down. Some qualified buyers may purchase with as little as 3% to 3.5% down, while eligible VA and USDA buyers may have no down payment requirement.
In addition to your down payment, plan for closing costs and other upfront homebuying expenses.
According to the Consumer Financial Protection Bureau, closing costs typically run about 2% to 5% of the purchase price, not including your down payment.
Do I Need 20% Down to Buy a House?
No. A 20% down payment is not required for many home loans.
Depending on your qualifications and the property you're buying, options may include:
Some conventional loans: As little as 3% down for eligible borrowers
FHA loans: As little as 3.5% down
VA loans: Eligible borrowers may qualify with no down payment
USDA loans: Eligible buyers purchasing an eligible property may qualify with no down payment
MSHDA programs: Eligible Michigan buyers may qualify for down payment and closing cost assistance
The U.S. Department of Housing and Urban Development confirms that FHA financing may require as little as 3.5% down.
Eligible veterans and service members may also be able to purchase with no down payment through a VA-backed home loan.
USDA also offers qualifying buyers no-down-payment financing in eligible rural areas. Property and household-income requirements apply. Learn more through USDA Rural Development.
What Are Closing Costs?
Closing costs are expenses associated with completing your mortgage and home purchase.
They can include things such as:
Lender fees
Appraisal costs
Title and settlement charges
Homeowners insurance
Prepaid property taxes
Escrow deposits
Recording and other transaction-related fees
The exact amount varies based on your lender, loan type, purchase price and property.
For early planning, the CFPB recommends estimating approximately 2% to 5% of the purchase price for closing costs.
What Does That Look Like on a $300,000 Home?
Here is a simple example.
If you purchased a $300,000 home using a loan that allowed a 3% down payment:
Down payment:
3% of $300,000 = $9,000
Estimated closing costs:
2% to 5% = approximately $6,000 to $15,000
That could put your estimated upfront amount around:
$15,000 to $24,000
That is only a planning example.
Your actual amount could be higher or lower depending on your mortgage, closing costs, seller concessions, assistance programs, taxes, insurance and other details of the transaction.
Can Down Payment Assistance Lower the Amount I Need?
Yes. Eligible Washtenaw County buyers may be able to reduce the amount of money they need upfront through down payment assistance.
The Michigan State Housing Development Authority currently offers the MI 10K Down Payment Assistance Program, which can provide eligible homebuyers with up to $10,000 toward:
Down payment
Closing costs
Prepaid expenses
The program is available statewide and must be combined with an eligible MSHDA MI Home Loan.
[Learn more about down payment assistance for Washtenaw County homebuyers.]
You can also review the current program directly through MSHDA's MI 10K Down Payment Assistance Program.
What About Earnest Money?
When your offer on a home is accepted, you may be asked to provide an earnest money deposit.
Earnest money shows the seller that you're serious about purchasing the property.
The amount is negotiated as part of your offer and can vary from one transaction to another.
If the purchase closes as agreed, earnest money is typically credited toward the money you owe at closing according to the terms of your purchase agreement.
That means you should have access to some funds before closing, even though those funds may eventually be applied toward your purchase.
Should I Budget for a Home Inspection Too?
Yes.
A home inspection is another expense buyers should consider when planning how much cash they'll need during the buying process.
Inspection costs vary based on the property and the services requested. Additional inspections may also be recommended depending on the home.
A home inspection isn't the same thing as your down payment or closing costs, so leave some room in your budget for expenses that may happen before closing day.
How Do I Know Exactly How Much I'll Need?
Start with a mortgage preapproval.
A lender can review your income, credit, debt and available funds and help determine:
What loan programs you may qualify for
Your estimated down payment
Your estimated monthly payment
Your estimated closing costs
Whether down payment assistance may be available
What home price fits your financial situation
Instead of asking, “What's the most expensive home I can qualify for?”, it can be more helpful to ask:
“What home price gives me a monthly payment I'm actually comfortable with?”
Those can be two very different numbers.
Buying a Home in Washtenaw County
Buying in Ypsilanti, Ann Arbor, Saline, Dexter, Chelsea or elsewhere in Washtenaw County starts with understanding your numbers.
You don't need to have every dollar figured out before talking with a real estate professional.
Hinton Real Estate Group helps Washtenaw County buyers understand the process, explore local communities and build a home search around their financing, lifestyle and goals.
Once you're preapproved, we can help you take that budget and turn it into a realistic local home search.
Ready to start looking at homes in Washtenaw County? Contact Hinton Real Estate Group.
Updated September 2026. Mortgage programs, assistance programs and qualification requirements can change. Examples on this page are for general educational purposes and are not a loan quote or guarantee of financing. Buyers should confirm current terms and eligibility with a qualified mortgage lender.
