Down payment assistance, grants, forgivable loans, and tax credits available to Michigan buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed September 2026·3 programs·6 federal programs
Administered by Michigan State Housing Development Authority
Up to $10,000
Statewide down payment assistance at 0% interest with no monthly payments. Due when you sell, refinance, or pay off the first mortgage (deferred, not forgiven).
Income limit
Income limits apply
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must use with MI Home Loan first mortgage.
Administered by Michigan State Housing Development Authority
Competitive rate + up to $10,000 DPA
Low-rate mortgage pairable with the MI 10K DPA Loan (up to $10,000 at 0% interest). Statewide sales price limit $566,355 (effective June 2026).
Income limit
Household income limits vary by family size and property location (MSHDA schedule); sales price limit $566,355 statewide after June 1, 2026.
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must complete homebuyer education.
Administered by Michigan State Housing Development Authority
Federal tax credit equal to 20% of annual mortgage interest paid, for the life of the loan (up to 30 years)
Dollar-for-dollar federal income tax credit of 20% of yearly mortgage interest; must be applied for through an approved MCC lender before closing; subject to federal recapture tax if sold within nine years.
Income limit
Household income limits vary by family size and property location (lower of state and federal limits)
Max home price$544,233
First-time buyer requiredYes
Special requirements: First-time homebuyers statewide (repeat buyers only in targeted areas); occupy as principal residence within 60 days; purchase loans only (no refinances); sales price cap $544,233.
View official program page
Apply through a MSHDA-approved MCC lender when obtaining the purchase mortgage.Verified September 2026
Federal programs (also available to Michigan buyers)
Good Neighbor Next Door
HUD · Federal program
50% off list price
Law enforcement, teachers, firefighters, and EMTs can buy HUD homes at 50% discount in revitalization areas.
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
Do I have to be a first-time homebuyer to qualify?
Most Michigan programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Michigan programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
