First-time homebuyer programs and grants in Michigan
Senior Content Writer
Quick insights
- Eligible Michigan first-time homebuyers may qualify for programs like the MI Home Loan, MI 10K Down Payment Assistance (DPA) and the Mortgage Credit Certificate (MCC) to help with financing, upfront costs and taxes.
- Michigan programs offered by participating lenders generally require buyers to complete a homebuyer education course and meet certain requirements for income, purchase price and credit score.
- Even if you don’t have a large down payment saved, combining a qualifying mortgage with Michigan assistance programs could reduce your out-of-pocket closing costs.
If you’re gearing up to buy your first home in Michigan, you may have more help available than you realize. Across cities big and small, from Detroit and Grand Rapids to Lansing and Ann Arbor, statewide programs can reduce the amount you need to pay upfront. From down payment assistance to affordable mortgage options and tax incentives, Michigan offers several resources. They are designed to help eligible first-time homebuyers become homeowners sooner.
Who qualifies for Michigan first-time homebuyer programs?
Eligibility requirements vary by program, but many Michigan first-time homebuyer programs have similar qualifications. Depending on the program, you may need to meet these requirements:
- Income limits: These vary by county, household size and program.
- Property type: Purchase an eligible property such as a single-family home, condominium, townhome or certain manufactured homes.
- Credit score: The Michigan State Housing Development Authority (MSHDA) doesn’t have a universal minimum credit score requirement for all of its programs. Credit requirements vary based on the program, mortgage product and participating lender. A higher credit score may improve eligibility for certain mortgage and assistance programs.
- Homebuyer education: Complete a homebuyer education course if required by the program before closing on your new home.
- Other requirements: Meet purchase price limits, occupy the house as your primary residence and work with a participating lender. For MSHDA programs, there are approved lenders.
Michigan first-time homebuyer programs
Michigan’s primary homebuyer assistance programs are offered through the Michigan State Housing Development Authority (MSHDA). Depending on your eligibility, you may qualify for one or more of the following:
- MI Home LoanOpens overlay: A statewide 30-year fixed-rate mortgage program for eligible first-time homebuyers that can be paired with down payment assistance. It features competitive rates, accessible underwriting (available as conventional, FHA, VA, or USDA loans), and can be paired with down payment assistance (DPA) up to $10,000.
- MI 10K Down Payment Assistance (DPA)Opens overlay: Provides up to $10,000 as an interest-free deferred loan that can be used toward your down payment, closing costs and prepaid expenses when combined with an MI Home Loan.
- Mortgage Credit Certificate (MCC)Opens overlay: Offers eligible homebuyers a federal tax credit that may reduce the amount of federal income tax they owe each year.
A homebuyer education program is required for certain MSHDA programs. This education can help homebuyers better understand the homebuying process and long-term responsibilities of homeownership.
Applying to Michigan first-time homebuyer programs
If you’re interested in applying for a Michigan first-time homebuyer program, these steps can help you get started:
- Review each program’s income, purchase price, property and credit score requirements.
- Find a participating MSHDA-approved lender.
- Complete any required homebuyer education course.
- Get preapproved for a mortgage.
- Apply for any eligible homebuyer assistance programs while completing your mortgage application.
- Work with your lender to submit any required documentation before closing.
Can you combine Michigan homebuyer programs with other mortgage loans?
In general, yes. Depending on your eligibility, some Michigan assistance programs can be paired with mortgage options such as FHA loans, conventional loans, USDA loans or VA loans. Your lender can explain which combinations you’re eligible for and whether they best fit your financial situation. Please note that Chase does not offer USDA loans.
In summary
Michigan first-time homebuyer programs can make purchasing your first home more affordable by offering eligible buyers low-interest mortgages, down payment assistance and valuable tax benefits. Before applying, review each program’s income, credit score, property and homebuyer education requirements. Working with a participating MSHDA-approved lender can help you determine which programs best fit your financial situation and homeownership goals.
