MSHDA MORTGAGE PROGRAMS

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 (located in Michigan). 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.

Program Description and Eligibility Requirements:

  • 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.

  • Borrowers need to contribute a minimum of 1 percent of the sales price (may come from an approved gift source).

  • Homebuyer Education class required – click here to find a Housing Educator.

    MI First Home Down Payment Assistance (DPA)

  • Maximum DPA is $7,500.

  • Available to first-time homebuyers statewide and repeat homebuyers in targeted areas. (A first-time homebuyer is someone that has not owned a home in the previous three years.)

  • 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 children who are verified to be full-time students (high-school or baccalaureate level).

    MI Next Home Down Payment Assistance (DPA)

  • Maximum DPA is the lesser of $7,500 or 4% of the sales price.

  • Available to repeat homebuyers statewide.

  • A minimum credit score of 660 is required.

  • Manufactured homes are not allowed.

  • Only one qualified borrower required.

    *ADDITIONAL REQUIREMENTS FOR ELIGIBILITY MAY APPLY.  SEE A MI FIRST HOME LENDER OR MI NEXT HOME LENDER FOR MORE INFORMATION.