Michigan First-Time Home Buyer Programs and Assistance

Michigan State Housing Development Authority (MSHDA) currently lists 2 programs for Michigan buyers, with down payment help up to $10,000 through MI 10K DPA Loan. Figures below were read from the agency's own pages on September 11, 2026.

Michigan first-time buyer programs open now

Michigan State Housing Development Authority (MSHDA) is the state's housing finance agency (homebuyer programs page). It runs 1 down payment or closing-cost assistance program alongside 1 below-market first mortgage. Has not owned a home in the previous three years (federal definition); MI Home Loan and the MCC are available to first-time homebuyers statewide, and to repeat homebuyers only in MSHDA-designated targeted areas

Program	Type	Amount	First-time only	Min. credit	Income limit
MI Home Loan source	First mortgage	See program page	Yes	640	Household income limits apply, vary by family size and property location;
MI 10K DPA Loan source	Second mortgage	Up to $10,000 toward down payment, closing costs, and prepaid expenses	No	n/a	Low and moderate incomes (standard MI Home Loan income limits apply)

MI Home Loan. Purchase price limit: $566,355 statewide, effective after June 1, 2026 Must pair with: A MSHDA-participating lender Where: statewide (first-time buyers); repeat buyers only in MSHDA-designated targeted areas Program page
MI 10K DPA Loan. Terms: Interest-free loan; no monthly payments; repayment deferred until payoff of the first mortgage, sale or refinance of the home, or when the home is no longer owner-occupied Must pair with: MSHDA MI Home Loan first mortgage Homebuyer education: required Program page

Mortgage credit certificate in Michigan

Michigan offers a mortgage credit certificate (MSHDA Mortgage Credit Certificate (MCC) Program), a federal tax credit worth 20% of the mortgage interest you pay each year, for as long as you live in the home. MCC program page

City and county programs in Michigan

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

City of Detroit (Housing and Revitalization Department): Down Payment Assistance Program. Program. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Michigan's median-priced home (about $269,700), 3% down is roughly $8,091. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Michigan programs often add income and purchase-price limits, which is another reason to confirm the details with Michigan State Housing Development Authority (MSHDA).

Stack a buyer rebate on top in Michigan

Down-payment assistance and a buyer commission rebate are two different things, and in Michigan you can use both. Assistance from Michigan State Housing Development Authority (MSHDA) helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $5,394 on a median-priced home), which can cover much of your closing bill.

See Michigan buyer rebates → See Michigan closing costs →

You may qualify for more help in your county

City and county governments in Michigan run their own down payment programs on top of the state ones, and most can be combined with a state loan. Each county page lists the local programs, income limits and local closing costs alongside the state programs:

Wayne County: local help up to $25,000

Frequently asked questions

What first-time home buyer programs are available in Michigan?

Michigan State Housing Development Authority (MSHDA) lists 2 programs: MI Home Loan, MI 10K DPA Loan. Down payment help runs up to $10,000. City of Detroit (Housing and Revitalization Department) also run local down payment programs.

How much down payment assistance can you get in Michigan?

Up to $10,000 through MI 10K DPA Loan (second mortgage). Other Michigan programs offer different amounts; see the table on this page for each one.

Do you have to be a first-time buyer to qualify in Michigan?

Not for every program. 1 of 2 Michigan programs are open to repeat buyers. Has not owned a home in the previous three years (federal definition); MI Home Loan and the MCC are available to first-time homebuyers statewide, and to repeat homebuyers only in MSHDA-designated targeted areas

How much down payment do you need in Michigan?

As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Michigan's median-priced home (about $269,700), 3% is roughly $8,091. You do not need 20% down, though 20% lets you avoid mortgage insurance.

Who counts as a first-time home buyer?

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Michigan programs also have income and purchase-price limits, so check with Michigan State Housing Development Authority (MSHDA).

Can I combine assistance with a buyer rebate in Michigan?

Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Michigan. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.

Official sources

Michigan program details last verified against Michigan State Housing Development Authority (MSHDA) on September 11, 2026.

Read the full guide to the cash you need to buy →

This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Michigan State Housing Development Authority (MSHDA) and your lender before you rely on them.

See first-time buyer programs in all states