What Loan Programs Are Available for Home buyers in Kalamazoo?

Buying a home is exciting, but one of the biggest decisions you’ll face early on is choosing the right loan program. The type of mortgage you select can affect your down payment, monthly payment, and even the types of homes you qualify for. If you’re starting your home search in Kalamazoo, Portage, Mattawan, or the surrounding areas, here’s a breakdown of the most common loan programs available.

1. Conventional Loans

Conventional loans are one of the most popular choices for buyers with solid credit and a stable financial history. While they typically require higher credit scores and larger down payments than other options, they also offer flexibility and competitive interest rates.

Best for: Buyers with strong credit and some savings for a down payment.

2. FHA Loans

An FHA loan is a government-backed mortgage designed to make home ownership more accessible. With lower credit score requirements and down payments as little as 3.5%, this program is especially helpful for first-time home buyers.

Best for: Buyers with limited savings or lower credit scores.

3. VA Loans

If you’re a veteran, active-duty service member, or qualifying family member, a VA loan may be one of the best benefits available. VA loans often require no down payment and come with competitive interest rates, making them one of the most affordable ways to purchase a home.

Best for: Military members, veterans, and eligible spouses.

4. USDA Loans

Designed to support home ownership in rural and suburban areas, USDA loans also offer no down payment and lower interest rates. Many areas around Southwest Michigan qualify for this program, making it an excellent option for those looking outside the city center.

Best for: Buyers purchasing in rural or suburban areas.

5. First-Time Buyer Assistance Programs

In addition to traditional loan options, Michigan offers special grants and down payment assistance programs for qualifying first-time home buyers. These programs can help reduce upfront costs and make home ownership more affordable.

Best for: First-time buyers who need extra financial support.

Which Loan Program Is Right for You?

The best loan program depends on your financial situation, long-term goals, and the type of home you want to buy. A trusted local lender can walk you through your options and help you find the right fit.

At Keefer Fischer Real Estate, we work with a network of lenders across Kalamazoo, Portage, and Southwest Michigan to make sure our clients have access to the best financing options available. If you’re considering buying a home, we’d love to connect you with the right resources to start your journey.

📲 Thinking about buying? Contact our team today, and let’s find the right path to homeownership together.