Down Payment Assistance Programs in Michigan (2026 Guide)

# Down Payment Assistance Programs in Michigan (2026 Guide) Saving for a down payment is one of the biggest hurdles for first-time home buyers. Fortunately, Michigan offers 3 assistance programs that can help you achieve homeownership sooner than you thought possible. ## Michigan Housing Agency All state DPA programs are administered by Michigan State Housing Development Authority (MSHDA). **Contact Information:** - Website: [https://www.michigan.gov/mshda](https://www.michigan.gov/mshda) - Phone: 517-335-9662 ## Available Programs Michigan offers 3 major down payment assistance programs: ### MI 10K DPA | Feature | Details | |---------|---------| | Maximum Assistance | $10,000 | | Program Type | Second Mortgage | | Description | 0% interest, deferred second mortgage for first-time buyers. | ### First-Generation DPA | Feature | Details | |---------|---------| | Maximum Assistance | $25,000 | | Program Type | Second Mortgage | | Description | For first-generation homebuyers. Deferred, 0% interest loan. | ### MI Home Loan | Feature | Details | |---------|---------| | Maximum Assistance | Up to 4% of loan amount | | Program Type | Forgivable Loan | | Description | Competitive rates with forgivable DPA option. | ## How to Apply ### Step 1: Check Your Eligibility Most programs require: - First-time homebuyer status (no home ownership in past 3 years) - Income at or below program limits - Minimum credit score (usually 620-640) - Home price within program limits ### Step 2: Complete Homebuyer Education All MSHDA programs require completion of a HUD-approved homebuyer education course. This prepares you for the responsibilities of homeownership. ### Step 3: Work with an Approved Lender MSHDA maintains a list of approved lenders trained in their programs. These lenders can help you combine DPA with your mortgage. ### Step 4: Find Your Home Once pre-approved, work with a real estate agent to find a home within program price limits. ## Combining with Your Mortgage Down payment assistance can be layered with various loan types: | Loan Type | Min Down | With MSHDA DPA | |-----------|----------|--------------------------| | FHA | 3.5% | DPA covers most or all | | Conventional | 3-5% | DPA covers most or all | | VA | 0% | DPA for closing costs | | USDA | 0% | DPA for closing costs | ## Real Cost Savings With Michigan's median home price of $217,600: | Scenario | Down Payment Needed | With Max DPA | |----------|--------------------|--------------| | FHA (3.5%) | $7,616 | Potentially $0 | | Conventional (5%) | $10,880 | Significantly reduced | | Conventional (20%) | $43,520 | Reduced by DPA amount | ## Conclusion Don't let down payment concerns keep you from homeownership. Michigan's DPA programs have helped thousands of first-time buyers achieve their dream. Contact MSHDA today to learn which programs you qualify for. Use our [Michigan Mortgage Calculator](/mortgage-calculator/michigan) to see how DPA affects your monthly payment. --- *Source: Michigan State Housing Development Authority. Program details subject to change. Contact MSHDA for current requirements.*