DIFS Shares Key Mortgage Tips for National Homeownership Month

Media Contact: DIFS-press@michigan.gov
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: June 1, 2026

(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS) is celebrating National Homeownership Month by sharing tips and providing information about mortgage options for Michiganders who are considering buying a home.

“Homeownership can provide individuals and families with greater financial security and stability, but it is important to understand your mortgage options to ensure you choose a loan that meets your needs and budget,” said DIFS Director Anita Fox. “Before committing to a mortgage, be sure to shop around and discuss your options with a trusted lender.”

Here are some tips to help you enter the mortgage marketplace and be loan ready:

• Evaluate your income and savings: Mortgage lenders want to ensure you have steady income and savings available to afford a down payment and closing costs on the property you are purchasing. Lenders will also evaluate your debt-to-income ratio (your total monthly debt payments divided by your gross monthly income) to make sure you can afford a monthly mortgage payment.
• Build your credit: Credit can affect more than your ability to get a mortgage and qualify for favorable interest rates – it is used in employment screenings, getting utilities, and more. Maintain a positive credit history and build your credit score by consistently making on-time payments, which is the most significant factor in calculating your score.
• Monitor your credit: You are entitled by law to a free copy of your credit report from each of the credit reporting agencies once a year. You may request your free credit report at AnnualCreditReport.com. Looking at your reports regularly is important to ensure all the information is accurate and that your identity has not been stolen. Catching inaccuracies and reporting those immediately to the credit reporting agencies is paramount to clearing fraud from your name, getting approved for loans and other services, and protecting yourself as a consumer.
• Scrutinize your budget: Thoroughly evaluate your budget to ensure you have money available to pay your mortgage, including taxes and homeowners insurance, and all other monthly bills.

When you are ready to move forward, there are several mortgage options you can agree to, each of which has risks and benefits depending on your financial situation. Many consumers focus on the loan option with the lowest monthly payment, but this may end up costing you more over the lifetime of the loan. Both fixed-rate and adjustable-rate mortgages have multiple options for borrowers, but it is important to know which mortgage type is right for you.

A fixed-rate mortgage is a home loan with an interest rate that remains the same over the lifetime of the loan, while an adjustable-rate or variable-rate mortgage is a home loan with an interest rate that changes over the lifetime of the loan and this can increase the amount of your monthly payment.

Here are additional housing resources available to you through DIFS and other Michigan agencies:

• DIFS’ mortgage comparison resource for fixed-rate and adjustable-rate mortgages and factors to consider in your loan decision-making process.
• DIFS’ mortgage page includes general information about mortgages, reverse mortgages, the Consumer Mortgage Protection Act, foreclosure, home loan modification, FHA loans, and more.
• Michigan Department of Health and Human Services’ (MDHHS) Home Ownership Services
• Michigan State Housing Development Authority’s (MSHDA) Housing Education Program
• You can also contact a MSHDA approved agency for other free assistance such as housing counseling, resources and support to help navigate the housing market, and education about understanding your rights and preventing home foreclosure.

National Homeownership Month began in 1995, originally as National Homeownership Week, under President Bill Clinton. Its goal was to increase homeownership across America. In 2002, President George W. Bush expanded the original idea, changing the observance from one week to the whole month of June. The goal of the month is to reinforce the belief homeownership is one of the steps towards achieving the American Dream.

DIFS encourages consumers to reach out to their lender to answer questions about their mortgage and for help if they have trouble meeting their loan obligations. Consumers can also contact DIFS for assistance at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. Translation services are available for individuals with limited English proficiency who contact the Department’s call center. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

####