Skip Navigation
MI.gov
MSHDA - Michigan State Housing Development Authority Michigan State Housing Development Authority
Michigan State Housing Development Authority
Email this Page
Share this Link on Facebook
Tweet this page on Twitter!

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.

Eligibility Requirements:

  • 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