Question 1

What credit score do I need to buy a house in Grand Rapids as a first-time buyer?

Accepted Answer

It depends on the loan. FHA goes as low as 580 with 3.5% down (or 500 with 10% down). Conventional typically wants 620. USDA needs about 640. VA sets no official minimum, though most lenders look for 580 to 620. If you also want MSHDA's $10,000 down payment assistance, you'll need a 640 score, or 660 for a conventional loan.

Question 2

How much down payment do I really need for a $304,000 Grand Rapids home?

Accepted Answer

Far less than 20%. Conventional first-time programs allow 3% down, about $9,120 on a $304,000 home. FHA needs 3.5%, roughly $10,640. VA and USDA both allow $0 down for those who qualify. With Michigan's MSHDA program adding up to $10,000 in assistance, many first-time buyers get in with very little cash out of pocket. The median Grand Rapids sale price was around $304,000 in 2026.

Question 3

Which Kent and Ottawa County towns qualify for a USDA zero-down loan?

Accepted Answer

In Kent County, USDA-eligible areas commonly include Sparta, Cedar Springs, Kent City, Sand Lake, Lowell, and parts of Caledonia and Byron Center. In Ottawa County, look at Coopersville, Conklin, West Olive, Spring Lake, and parts of Zeeland and Hudsonville. Roughly 71% of Kent County and 76% of Ottawa County land qualifies per the USDA map. The city of Grand Rapids and dense suburbs do not. Eligibility is address-specific, so verify each parcel.

Question 4

What's the income limit for a USDA loan in the Grand Rapids area in 2026?

Accepted Answer

For the USDA guaranteed loan program in the Grand Rapids area, the 2026 limit is about $119,850 for a household of four or fewer people, and $158,250 for households of five or more, per USDA's published limits. These are total household income figures, not just the borrowers on the loan. If you're over the cap, USDA won't work and you'd typically look at conventional or FHA instead.

Question 5

Does FHA or conventional mortgage insurance ever go away?

Accepted Answer

Conventional PMI does. Once your loan balance reaches 80% of the home's value, you can request removal, and it cancels automatically at 78%. FHA is different: on most low-down-payment FHA loans, the annual MIP of 0.55% stays for the life of the loan. That's why many buyers use FHA to get in, then refinance into a conventional loan a couple years later to drop the insurance once their credit and equity have grown.

Question 6

Do VA loans require mortgage insurance or a down payment?

Accepted Answer

No to both. VA loans allow $0 down and charge no monthly mortgage insurance, which is the biggest reason they beat other programs for eligible veterans and service members. The one cost is a funding fee, 2.15% of the loan on first use with no down payment, which can be financed into the loan. On a $304,000 purchase that's about $6,536. Many disabled veterans are exempt from the funding fee entirely.

Which loan type fits a Grand Rapids first-time buyer — FHA, VA, USDA, or conventional?

What You Need to Know

Most Relevant Buyers Questions

What is MSHDA and how does it help first-time homebuyers in Grand Rapids?

What down payment assistance programs are available for buyers in Grand Rapids?

What are the income limits for MSHDA loans in Kent County?

How does the Grand Rapids Housing Commission's homeownership program help with closing costs?

How much are closing costs on a $300,000 home in Grand Rapids?

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