Michigan First Home Down Payment Assistance

The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to help homebuyers purchase a home. It is a second mortgage that must be used in conjunction with MSHDA's MI First Home or MSHDA's MI Next Home first mortgage. Designed for low- to moderate-income homebuyers, depending on the home location and family size, this program requires the borrower to complete a homebuyer education class from an MSHDA approved agency or a HUD-approved agency, located in Michigan.

The DPA is a zero-interest, non-amortizing loan with no monthly payments; it is only due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full.

Eligibility Requirements
One of the programs that MSHDA offers is the MI First Home Down Payment Assistance (DPA). The maximum DPA under this program is $7,500. To be an eligible borrower, the following criteria must be met:

• Applicants must complete a Homebuyer Education class.
• The program is available to first-time homebuyers statewide and repeat homebuyers in targeted areas.
• Applicants must have a minimum credit score of 640, OR 660 for multiple-section manufactured homes permanently affixed to a foundation, built after June 14, 1976, and taxed as real estate (not located in a rent/lease community).
• All adults in the household intending to occupy the residence must co-apply and credit qualify for the mortgage loan, excluding children who are verified to be full-time students.

Repeat homebuyers from the following targeted areas can qualify for the MI First Home DPA:

Alcona, Alger, Allegan, Alpena, Antrim, Arenac, Baraga, Barry, Benzie, Berrien, Branch, Cass, Charlevoix, Cheboygan, Chippewa, Clare, Delta, Emmet, Gogebic, Traverse, Gratiot, Houghton, Ingham, Iosco, Ionia, Iron, Kalamazoo, Keweenaw, Lapeer, Leelanau, Lenawee, Luce, Manistee, Marquette, Mason, Mecosta, Menominee, Missaukee, Montcalm, Montmorency, Newaygo, Oceana, Ogemaw, Ontonagon, Osceola, Otsego, Presque Isle, Roscommon, St. Clair, St. Joseph, Sanilac, Schoolcraft, Tuscola, Van Buren, Washtenaw, and Wexford.

(Note: All figures mentioned above were accurate at the time of publication and may no longer be current - visit the program website for updated information.)