First Time Homebuyer Programs
- Low Down Payment: Many programs allow low down payments and can range from 0% of the purchase price to 5% of the purchase price. In some cases, down payment funds may also be gifted to you.
- Down Payment Assistance: Mercantile Bank works with several agencies and offer programs including Home One, Home Possible, and Home Ready that may be able to assist with down payment assistance and reduced Private Mortgage Insurance Rates (qualifications required, see Mortgage Loan Officer for details).
- Extra Credit Program: Mercantile Bank is committed to helping its first-time homebuyers in achieving their goal of homeownership. To show our commitment, we offer up to $2,500 in down payment assistance for our low to moderate-income first-time homebuyers (qualifications required, see Mortgage Loan Officer for details).
- Reduced Closing Fees: As a first-time homebuyer you may qualify for reduced closing fees.
- Reduced or Waived Private Mortgage Insurance: You may qualify for reduced or waived Private Mortgage Insurance, depending on the mortgage program. Talk to a Mortgage Loan Officer today to learn more.
- Launch: Launch is a down payment assistance program that provides up to $20,000 in grant funding to first-time homebuyers. Households are assisted through a first-come, first-served system until funds are exhausted. Buyers must be first-time homebuyers, have a household income at or below 80% of the area median income, households who have a PITI less than or equal to 40%, and can households who contribute a minimum of $500 to purchase transaction.
- HomeBoost Down Payment Assistance Program: HomeBoost is a minority down payment assistance program that provides up to $15,000 in grant funding to first-time homebuyers purchasing a home in Michigan. First-time homebuyers intending to purchase a primary residence in Michigan who identify as Black or African American, Asian, Hispanic, Indian American or Alaska Native, and/or Native Hawaiian or Other Pacific Islander and have a household income at or below 120% of the local area median income (AMI) qualify for this program. This is a first-come, first-served system until funds are exhausted.
Traditional Mortgage Programs
- Conventional Mortgage: This is the most commonly used program that follows the requirements set by Freddie Mac and Fannie Mae and may require as little as 3% down. A conventional mortgage offers a fixed rate throughout the life of the loan.
- Federal Housing Administration (FHA) Loans: The Federal Housing Administration offers affordable financing through the FHA Mortgage program and may require as little as 3.5% down (down payment funds can be gifted).
- Rural Development (RD) Loan: If you are purchasing in a rural area, you may want to consider an RD Loan, which is a special mortgage program which requires little to no money down. With a Rural Development Loan, you do not need to be a first-time homebuyer.
- Veteran Affairs (VA) Home Loan: If you are a military veteran, reservist, active-duty personnel, or surviving spouse of a military veteran, you are eligible for a VA Home Loan, which offers low to no down payment, attractive interest rates, and favorable credit terms.
- Portfolio Loans: Portfolio Loans are mortgages designed by Mercantile Bank to help promote homeownership in the markets we serve. These loans encompass Mercantile Bank's specialty programs including Mercantile Bank's construction loan and Community Champion Program.