Down Payment Assistance
Thinking About Buying a Home?
Down Payment Assistance (DPA) may be available from MSHDA to help you purchase your 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. This program is for low- to moderate-income homebuyers, depending on the home location and your family size. MSHDA's DPA loan programs require the homebuyer to take a homebuyer education class from a MSHDA approved agency or a HUD approved agency. The homebuyer education class will give you valuable information as you take that first step toward homeownership.Contact a participating MI First Home or MI Next Home Experienced Loan Officer to learn more.
Find a Housing Educator near you.
- Available with MSHDA's FHA or Rural Development first mortgages
- Funds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a qualified home inspector
- Zero-interest, non-amortizing loan with no monthly payments
- The loan is due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full
- Maximum Down Payment Assistance is $7,500 (or up to 4% maximum with the MI Next Home program)
- A minimum credit score of 640 is required 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. Exceptions are made only for child dependents who are verified to be full-time students.
- Borrowers may only need to contribute a minimum of 1 percent of the sales price