First-Time Home Buyer Programs in Michigan

Michigan State Housing Development Authority (MSHDA) Programs:

MI Home Loan:

Eligibility: First-time homebuyers statewide and repeat buyers in targeted areas.
Offerings: 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional); can pair with down payment assistance.
Requirements:

• Income within county limits (e.g., ~$126,500 in Kent County). MI Home Loan details.
• Credit score ≥ 640 (660 for multi-section manufactured homes).
• DTI ≤ 45% (50% with compensating factors).
• Homebuyer education required if using DPA.
• Purchase price limit: $224,500 statewide.

MI 10K DPA:

Benefits: Up to $10,000 as a 0% deferred loan for down payment/closing costs; available in select ZIP codes. Loan & program guide.

First-Generation Down Payment Assistance (FirstGenDPA):

Description: Offers up to $25,000 as a deferred loan to first-generation buyers; launched February 2025 with $8M in funding. FirstGenDPA info.

• Must be a first-generation buyer (no parent/guardian ownership in last 3 years, or aged out of foster care).
• Purchases ≤ $224,500 must pair with MI Home Loan.
• Credit score ≥ 640, ≥ 1% borrower cash contribution, face-to-face education required.
• Income limits apply; cannot be combined with MI 10K DPA.

Local Programs:

Detroit

Tobias Harris Homeownership Initiative: New pilot launched September 2025. Provides up to 40% of the purchase price as down payment assistance through a shared-appreciation model (no monthly repayment; funds repaid at sale/refinance). Currently for first-time buyers in select Detroit neighborhoods. Program details.
More information can be found at Tobias Harris Homeownership Initiative.

Detroit Home Mortgage Program: Up to $75,000 loan (includes renovation), plus $5,000 grant; income ≤ 120% AMI (~$103,200 for family of four).

Grand Rapids

Homebuyer Assistance Fund: Up to $7,500 deferred loan; income ≤ 80% AMI; <$10,000 in assets.

Lansing

Lansing DPA: Up to $10,000 forgivable after 5 years; income ≤ 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): 20% federal tax credit (max $2,000/year); combinable with MI Home Loan.
• Loan Options: FHA (3.5% down, credit ≥ 580), USDA & VA (0% down).