Down Payment Assistance Programs Michigan
Michigan DPA programs can cover 3%–5% of your purchase price. We identify every grant, forgivable loan, and assistance program you qualify for, at no extra cost.
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Down Payment Assistance Programs in Michigan
Michigan has several down payment assistance (DPA) programs designed to help buyers who qualify for a mortgage but need help covering the upfront costs of homeownership. The most widely used program is administered by the Michigan State Housing Development Authority (MSHDA), but there are also local and county-level programs that may offer additional assistance depending on where you are buying.
MSHDA Down Payment Assistance
MSHDA's MI Home Loan program offers down payment assistance of up to $10,000 for qualifying buyers purchasing in Michigan. The assistance is structured as a zero-interest second mortgage with no monthly payment — it is repaid when you sell the home, refinance, or pay off the first mortgage. To qualify, you must use a MSHDA-approved lender, meet income limits (which vary by county and household size), and purchase a home that meets MSHDA's purchase price limits. The program is available to both first-time buyers and repeat buyers in certain targeted zip codes.
Combining DPA with FHA or Conventional Loans
MSHDA down payment assistance can be combined with both FHA and conventional first mortgages. When combined with an FHA loan, the MSHDA second mortgage covers the 3.5% down payment and may also cover a portion of closing costs. When combined with a conventional loan, the DPA can cover the down payment and reduce the cash needed at closing. Your loan officer will structure the combination that minimizes your out-of-pocket costs while keeping your monthly payment within your budget.
Income Limits and Eligibility
MSHDA income limits vary by county and household size. In most Southeast Michigan counties, the income limit for a household of 1-2 people is approximately $95,000 to $110,000, with higher limits for larger households. You do not need to be a first-time buyer to qualify in targeted areas, but first-time buyer status (no homeownership in the past 3 years) is required in non-targeted areas. Your loan officer will confirm your eligibility and identify all available programs for your specific county and purchase price.
Frequently Asked Questions
What down payment assistance programs are available in Michigan?
The primary statewide program is MSHDA's MI Home Loan, which offers up to $10,000 in down payment assistance as a zero-interest second mortgage. Local and county-level programs may offer additional assistance. Your loan officer will identify all programs you qualify for based on your location and income.
Do I have to repay down payment assistance?
MSHDA's DPA is a zero-interest second mortgage with no monthly payment. It is repaid when you sell the home, refinance, or pay off the first mortgage. It is not a grant — it must be repaid, but only when you exit the home.
Can I combine DPA with an FHA loan?
Yes. MSHDA down payment assistance can be combined with FHA, conventional, and other first mortgage programs. When combined with FHA, the DPA can cover the 3.5% down payment and potentially a portion of closing costs.
What are the income limits for MSHDA down payment assistance?
Income limits vary by county and household size. In most Southeast Michigan counties, the limit for a 1-2 person household is approximately $95,000 to $110,000. Your loan officer will confirm the exact limits for your county during the pre-approval process.
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