Michigan Mortgage Calculator

Michigan assesses property at 50% of market value (called State Equalized Value or SEV). The actual taxable value is capped at the prior year's taxable value plus 5% or CPI (whichever is less) under Proposal A — so your taxes don't spike dramatically in fast-appreciating markets. The Principal Residence Exemption (PRE) exempts your primary residence from up to 18 mills of school operating tax, saving the average homeowner $1,000–$2,000/year. File Form 2368 with your local assessor within 90 days of closing. Source: Michigan Department of Treasury (https://www.michigan.gov/treasury/taxes/prop-tax).

Michigan charges a state real estate transfer tax of $3.75 per $500 of sale price. Most counties add a county transfer tax of $1.10 per $500, bringing the combined rate to $4.85 per $500 (0.97%). On a $240,000 home, the total transfer tax is $2,328. The transfer tax is paid by the seller. However, sellers who purchased the property before a certain date may qualify for an exemption on the state portion. Source: Michigan Department of Treasury (https://www.michigan.gov/treasury/taxes/transfer).

The 2026 FHFA conforming loan limit in Michigan is $806,500 for all 83 counties. Michigan has no high-cost counties. With the statewide median home price around $240,000, virtually all Michigan home purchases qualify for conventional financing, giving buyers access to the most competitive mortgage rates and terms. Source: FHFA 2026 Conforming Loan Limit Table (https://www.fhfa.gov/data/conforming-loan-limit).

Michigan has a flat state income tax rate of 4.25%. Additionally, 24 Michigan cities levy local income taxes — Detroit charges 2.4% for residents (1.2% for non-residents), Grand Rapids charges 1.5%, Lansing 1.0%, Flint 1.0%. For a Grand Rapids resident earning $65,000, combined state + city income tax is about $3,737/year. These taxes directly reduce take-home pay available for mortgage payments. Source: Michigan Department of Treasury (https://www.michigan.gov/treasury/taxes/city).

The Michigan State Housing Development Authority (MSHDA) offers the MI Home Loan program with $10,000 in down payment assistance as a 0% second mortgage — no monthly payment required until sale or payoff. The MI Home Loan Flex has more relaxed credit requirements and is open to repeat buyers. To qualify, buyers generally need a minimum credit score of 640, income under $95,000–$140,000 depending on household size, and must complete a homebuyer education course. Visit https://www.michigan.gov/mshda or call 844-843-4663 for a list of approved lenders.