MI 10K DPA Loan (paired with MI Home Loan)
Michigan State Housing Development Authority (MSHDA) — the state housing finance agency
Amount: Up to $10,000 toward down payment, closing costs, and prepaid expenses, structured as a 0% interest, non-amortizing second mortgage with no monthly payments. Repayment is deferred until the home is sold, refinanced, the first mortgage is paid off, or the property stops being the borrower's primary residence.
Type: Deferred-payment second mortgage (0% interest DPA loan), available statewide, must be paired with an MSHDA MI Home Loan (first mortgage)
Must be a first-time homebuyer (no home ownership in the past 3 years) in most of the state (repeat buyers now qualify in many counties following a 2025 law change); minimum credit score 640 (660 for multi-section manufactured homes); household income must be under MSHDA's county-specific limits (these vary widely by county and household size — e.g., roughly $95,900-$110,285 in Macomb County vs. $129,720-$151,340 in Kalamazoo County for 2026); home sales price must be under the current statewide/county limit (raised substantially in 2025-2026 under Michigan House Bill 5032 from a longstanding $224,500 cap to a figure in the roughly $510,000-$566,000 range statewide, tied to 90% of IRS Mortgage Revenue Bond safe-harbor limits and updated periodically — buyers should confirm the exact current cap for their county with an MSHDA-approved lender); borrower liquid assets generally capped around $20,000; property must be a primary residence; completion of a HUD-approved homebuyer education course is required.
MSHDA First-Generation Down Payment Assistance (First-Gen DPA)
Michigan State Housing Development Authority (MSHDA)
Amount: Up to $25,000 toward down payment, closing costs, and prepaid escrows (larger than the standard MI 10K DPA)
Type: Grant/DPA pilot program funded via an $8 million state budget appropriation
IMPORTANT STATUS NOTE: This program's initial funding round was fully exhausted around May 2025 after assisting roughly 320 families, and as of 2026 it is closed to new applicants (no active waitlist). When it was active, eligibility required: first-generation homebuyer status (borrower has not owned a home in the last 3 years AND no parent of the borrower had ownership interest in a home in the last 3 years); minimum credit score of 640; primary-residence single-family home or condo; purchase price under MSHDA's price limit; household income within MSHDA limits; completion of a face-to-face HUD-approved homebuyer education class. Buyers who would have qualified are directed back to the standard $10,000 MI 10K DPA loan above. Included here because it is a real, named MSHDA program, but honestly flagged as currently unfunded/closed rather than a live option for 2026 applicants.