How Much Do I Need to Buy a House in Grand Rapids?

By Perigon Realty Group

Helping West Michigan families move with confidence — from one home to the next.

If you’re thinking about buying a home in Grand Rapids, you’re not alone — and you’re probably wondering: How much do I actually need to save to get started?

The good news is, buying a home in West Michigan is more achievable than many people think. With a range of loan programs, local down payment assistance options, and a healthy variety of price points, there’s a path to homeownership for nearly every budget.

At Perigon Realty Group, we help buyers every day navigate this exact question — so let’s break it down.

Down Payment: How Much Do You Really Need?

The old rule of “20% down” isn’t the only way to buy a home anymore. While putting 20% down can help you avoid private mortgage insurance (PMI), most buyers in today’s market put down much less.

Here’s what’s typical in Grand Rapids:

• FHA loans: As little as 3.5% down

• Conventional loans: Often 3–5% down

• VA and USDA loans: 0% down for eligible buyers

• Down payment assistance: Michigan State Housing Development Authority (MSHDA) programs can offer up to $10,000 toward your down payment and closing costs.

For a $300,000 home — close to the median price in the Grand Rapids area — that could mean a down payment between $10,500 and $15,000, or even less with assistance.

Other Costs to Plan For

Beyond your down payment, there are a few additional expenses to consider:

• Closing costs: Usually 2–4% of the purchase price (covering things like lender fees, title work, and escrow).

• Home inspection & appraisal: Around $700–$1,000 total

• Earnest money deposit: Typically 1–2% of the purchase price, credited back to you at closing.

• Moving costs & initial maintenance: Every home needs a few small fixes — plan for a little cushion.

Monthly Payment Breakdown

Your monthly payment includes more than just the mortgage. It’s typically made up of:

• Principal & interest (your loan)

• Property taxes

• Homeowners insurance

• PMI (if applicable)

• HOA dues (for certain communities)

Affordability in the Grand Rapids Market

Compared to larger metro areas, Grand Rapids remains one of the most affordable housing markets in the Midwest. While home values have grown steadily, they still provide strong long-term stability and opportunity for equity growth.

Whether you’re a first-time buyer, relocating to West Michigan, or looking to invest, understanding your numbers upfront gives you a major advantage — and we can help you do just that.

Ready to Find Out What You Can Afford?

Every buyer’s situation is different — and that’s where our team comes in. We’ll connect you with trusted local lenders, outline your true budget, and help you find homes that align with your goals and comfort level.

At Perigon Realty Group, our mission is simple:

To help clients find homes where memories are made, financial stability is created, and wealth is grown.

If you’re curious what you can afford in today’s Grand Rapids market, start your home search or request a personalized affordability estimate — we’d love to help you take the first step.

Frequently Asked Questions About Buying a Home in Grand Rapids

1. How much do I need for a down payment on a home in Grand Rapids?

Most buyers put down between 3% and 5% of the purchase price. For example, a $300,000 home would typically require around $9,000–$15,000 down.There are also programs through MSHDA (Michigan State Housing Development Authority) that can offer up to $10,000 in assistance to qualifying buyers, helping with your down payment and closing costs.

2. What are typical closing costs when buying a house?

Closing costs usually range from 2% to 4% of the home’s price. These cover items like your appraisal, title insurance, escrow fees, and lender costs.For a $300,000 home, plan for roughly $6,000–$12,000 in total closing costs — though some sellers or programs may help offset those costs.

3. How much are property taxes in Kent County?

In most of West Michigan, property taxes are around 1.5–1.7% of a home’s value per year. That means a $300,000 home would have about $4,500–$5,100 in annual taxes — or roughly $375–$425 per month, depending on the township and exemptions.

4. How much should I budget to buy a $300,000 home in Grand Rapids?

Between your down payment (around $15,000) and closing costs (about $8,000), a realistic target is roughly $20,000–$25,000 in upfront funds.Monthly payments for that price range often fall between $2,000 and $2,300, depending on your loan type, insurance, and taxes.

5. Is Grand Rapids still an affordable market?

Yes — and that’s one of the reasons so many families, young professionals, and investors are drawn here.Grand Rapids continues to rank among the most affordable and fastest-growing housing markets in the Midwest, offering strong value, community amenities, and long-term equity potential.

6. Do I need perfect credit to buy a home?

Not at all. Many buyers purchase homes with credit scores in the 620–680 range. Lenders look at your full financial picture — including income, debt ratio, and payment history — and there are programs designed to help first-time buyers with less-than-perfect credit.

7. What’s the first step to buying a home?

The best first step is to sit down with a local Realtor to walk through what the buying process would look like. They who can also connect you with a local lender to walkthrough the pre-approval process. This gives you a clear budget and strengthens your offer when you find the right home.Our team works closely with trusted local lenders across West Michigan and can help you get started with a quick, no-obligation consultation.

🏡 Ready to Take the Next Step?

Whether you’re just exploring or ready to buy, Perigon Realty Group is here to guide you every step of the way.👉 Start your home search or request a personalized affordability estimate today — and let’s make your Grand Rapids homeownership goals a reality.