Michigan Down Payment Assistance
Michigan Down Payment Assistance Programs
A guide to current down payment assistance options in Michigan, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Michigan homebuyers.
Michigan Housing Finance Agency
Michigan State Housing Development Authority (MSHDA)
MSHDA administers the primary DPA programs for Michigan. Program details below are current as of October 17, 2026 - confirm current terms directly with MSHDA before applying.
Statewide DPA Programs in Michigan
MI Home Loan
MSHDA
30-year fixed-rate first mortgage with below-market rates. Pairs with MSHDA down payment assistance.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 640
- Income: MSHDA county-based income limits apply (household income); see MSHDA schedule.
- Homebuyer education required
First-time homebuyer means no home owned in the previous 3 years. Repeat buyers may qualify in targeted areas. Sales price limit of $566,355 statewide (after June 1, 2026).
Source: www.michigan.gov
MI 10K DPA Loan
MSHDA
Up to $10,000 at 0% interest toward down payment, closing costs, and prepaids. No monthly payment; due at payoff of the first mortgage, sale or refinance, or when the home is no longer owner-occupied.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 640
- Income: MSHDA county-based income limits apply; see MSHDA schedule (limits vary by county and household size).
- Homebuyer education required
Must be paired with an MSHDA MI Home Loan first mortgage. Available statewide. Homebuyer education certificate required for all homebuyers.
Source: www.michigan.gov
Mortgage Credit Certificate (MCC)
MSHDA
Federal tax credit equal to 20% of annual mortgage interest paid, available every year for the life of the original mortgage (up to 30 years).
- First-time homebuyer: Required
- Primary residence only
- Income: MSHDA household income limits apply; vary by family size and property location.
Repeat buyers may qualify in targeted areas. Must be applied for and approved before buying, through an approved MCC lender. Maximum sales price applies statewide.
Source: www.michigan.gov
Major City & County Programs in Michigan
Detroit Down Payment Assistance Program
City of Detroit Human, Homeless and Family Services Department · Detroit, MI
Grant of up to $25,000 for down payment, prepaids, and closing costs for income-eligible buyers purchasing in Detroit. Amount is based on unmet need and cannot exceed 50% of the purchase price.
Household income at or below 80% AMI; must have lived in Detroit for the past 12 months and not owned a home in the past 3 years; 1-2 unit primary residences in Detroit only. Homebuyer education, lender pre-qualification, and a signed purchase agreement required before applying. May be layered with MSHDA DPA. CDBG-funded, first-come first-served.
Source: detroitmi.gov
2026 Loan Limits in Michigan
Conforming (Conventional)
$832,750 baseline
FHA
$541,287
Standard FHA limit, applies to most Michigan counties.
Live DPA Pricing for Michigan
Pricing below is sourced live from hundreds of wholesale lenders for a Michigan scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Michigan with live pricing
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