Down Payment Path

Down Payment Assistance Programs in Michigan

Michigan provides a variety of down payment assistance programs to help buyers cover upfront costs and achieve their dream of homeownership. These programs are designed to support a broad range of buyers, ensuring both first-time and repeat purchasers can benefit from financial assistance in the Great Lakes State.

MI DPA Loan Program

The MI Down Payment Assistance (MI DPA) Loan Program, offered by the Michigan State Housing Development Authority (MSHDA), provides financial support for down payments and closing costs.

  • Offers up to $10,000 in assistance as a zero-interest second mortgage.
  • Repayment is deferred until the home is sold, refinanced, or the first mortgage is paid off.
  • Available for FHA, VA, USDA, and conventional loans through MSHDA-approved lenders.
  • Open to eligible buyers meeting income and purchase price limits.

MSHDA MI 10K DPA Loan

The MI 10K DPA Loan provides enhanced down payment assistance for eligible buyers in specific areas.

  • Provides up to $10,000 in financial support for down payment and closing costs.
  • Targeted at buyers in designated high-priority areas across the state.
  • Includes the same zero-interest deferred repayment terms as the standard MI DPA loan.

USDA Rural Development Loans

For buyers in rural Michigan, the USDA Rural Development Loan offers affordable financing with no down payment required.

  • Available to low- and moderate-income buyers in USDA-designated rural areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with MSHDA programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program helps reduce the overall cost of homeownership by providing valuable tax benefits.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Can be paired with MSHDA loans and down payment assistance programs.
  • Income and purchase price limits apply, but the program accommodates a wide range of buyers.

Local Assistance Programs

Many cities and counties in Michigan offer additional resources for homebuyers to cover down payment and closing costs.

  • Programs in areas like Detroit, Grand Rapids, and Ann Arbor often provide grants or low-interest loans for upfront costs.
  • Some initiatives offer benefits for public service workers, such as educators and first responders, or for buyers purchasing homes in revitalization zones.
  • Eligibility and assistance levels vary by location.

Michigan’s down payment assistance programs are designed to make homeownership more attainable by reducing upfront costs. Whether you’re purchasing your first home or moving to a new one, these programs can provide the support you need to achieve your goal of homeownership in the Great Lakes State.