Spaul-Ding Associates, LLC 1st-Time Homebuyer Specialists

Yes, most of my first-time buyers don't put down anywhere near 20%. While it helps you avoid Private Mortgage Insurance (PMI), waiting years to save that much often means home prices rise faster than you can save. 

The cash you'll need upfront, even if you’re getting assistance, will show you're serious. 

1. When your offer is accepted on that cute house in Grand Ledge, you’ll write a check for "Earnest Money" (usually 1-2% of the price). 
2. You’ll pay around $400–$600 out of pocket for a home inspector to crawl through the attic.

The Good News: Because many first-time homebuyer programs, including the $10,000 MSHDA grant, cover your down payment and closing costs, most of that "Earnest Money" you paid at the start often comes back to you as a check at the closing table.

In areas like Calhoun County and Lansing, we have incredible local programs:

• MSHDA’s MI 10K DPA: This is a fan favorite in Michigan—it’s a $10,000 loan to help with your down payment that you don't even have to pay back until you sell or finish your mortgage.
  
• USDA Loans: If you're looking in more rural spots like Hastings (Barry County) or Charlotte (Eaton County), you might qualify for a 0% down payment loan.
  
• The Sweet Spot: Many of my clients find that 3% to 5% down gets them through the door without draining their "emergency furnace fund."

I always tell my clients that a "good" home is one where the big-ticket items—the Roof, HVAC, and Foundation—are solid.

• The 1% Rule: Budget roughly 1% of the home's value annually for maintenance. If the house is in Grand Ledge and costs $300k, plan for $3,000 a year in upkeep to cover any surprises.
• Location vs. Layout: You can change a kitchen, but you can't move a house. Buying in a stable or growing neighborhood such as Eaton County is often a safer bet than buying the "best house on a shaky block."

Marry the House, Date the Rate: If you find the perfect home in East Lansing but don't love the interest rate, remember: you can't "re-buy" your home at today's price once it goes up, but you can always refinance later to get a new rate. 

• Everyone is "rate-watching,"  but waiting can be a double-edged sword because when rates lower, competition increases. In 2025, 26% of Michigan homes sold above asking price. You’ll be fighting 50 other buyers bidding for the same house in Kalamazoo or East Lansing. Waiting for rates to drop can easily mean you're also paying a higher purchase price.

• The Strategy: The best time to buy is when you’re personally ready, not when the news tells you to. Buy the house now while you have some breathing room to negotiate. If you plan on staying for 5–7 years, the "noise" of the market matters a lot less. You’ll be building equity instead of paying a landlord's mortgage and can always refinance down the road when that great rate eventually hits.