First-Time Home Buyer Programs in Michigan

Michigan State Housing Development Authority (MSHDA) Programs:

MI Home Loan:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) statewide and repeat buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $126,500 for a 1-2 person household in Kent County as of 2025).
• Minimum credit score of 640 (660 for multi-section manufactured homes).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required if using down payment assistance.
• Purchase price limit of $224,500 statewide.

MI 10K DPA (Down Payment Assistance):

Benefits: Offers up to $10,000 as a 0% interest, deferred loan (repayable upon sale, refinance, or payoff of first mortgage) for down payment and closing costs; available statewide.
Eligibility: Must use an MI Home Loan; income and purchase price limits apply (same as MI Home Loan).

First-Generation Down Payment Assistance (FirstGenDPA):

Description: Provides up to $25,000 as a deferred loan (0% interest, repayable upon sale or refinance) for first-generation homebuyers (neither borrower nor parents owned a home in the past three years); launched February 2025 with $8 million in funding.
Requirements: Must pair with an MI Home Loan; income limits apply; minimum credit score of 640; face-to-face homebuyer education required.

Local Programs:

Detroit

Detroit Home Mortgage Program: Offers up to $75,000 loans combining purchase and renovation costs with small grants (e.g., $5,000) for closing costs; income capped at 120% AMI (e.g., $103,200 for a family of four).

Grand Rapids

Homebuyer Assistance Fund: Provides up to $7,500 as a deferred loan (0% interest, due upon sale) for down payment and closing costs; income must be below 80% AMI; cash assets under $10,000.

Lansing

Lansing Down Payment Assistance: Offers up to $10,000 as a forgivable loan (forgiven after 5 years) for first-time buyers; income capped at 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers or those in targeted areas; combinable with MI Home Loan.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Michigan areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.