MSHDA Down Payment Assistance: What Michigan Buyers Need to Know
Michigan's MSHDA DPA program can provide up to $10,000 toward your down payment and closing costs. Here's how it works and who qualifies.
The Michigan State Housing Development Authority (MSHDA) offers a Down Payment Assistance program that provides up to $10,000 to eligible buyers. This can be used toward your down payment and closing costs — two of the biggest hurdles for first-time buyers.
The DPA comes as a zero-interest, non-amortizing second mortgage. That means no monthly payments on the assistance amount. It is repaid when you sell, refinance, or pay off the first mortgage.
To qualify, you generally need a minimum 640 credit score, income within MSHDA limits for your household size and county, and the property must be your primary residence. Purchase price limits also apply depending on the county.
The program pairs with MSHDA's MI Home Loan, which is a 30-year fixed-rate mortgage. It is available to first-time buyers statewide and to repeat buyers in certain targeted areas of Michigan.
If you are buying in Michigan and coming up short on cash to close, MSHDA DPA is one of the strongest tools available. Reach out to discuss whether you qualify and how to structure your offer competitively.