Skip Navigation
MSHDA - Michigan State Housing Development Authority | LARA Michigan State Housing Development Authority | LARA
Michigan State Housing Development Authority | LARA
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. The program includes a homebuyer education class that 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 must apply and credit qualify  (unless full-time student - 12 credit hours)
  • Borrowers may only need to contribute a minimum of 1 percent of the sales price