Key Takeaways
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Michigan first-time homebuyer programs offer low-interest loans and financial assistance statewide.
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The MI 10K DPA provides $10,000 in down payment assistance with no monthly payments.
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The new First-Generation Homebuyer program offers up to $25,000 for eligible buyers.
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Local options like Detroit NACA and Grand Rapids DPA provide forgivable grants and low-interest mortgages.
First-time homebuyer programs in Michigan, along with 2025 down payment assistance, can make purchasing your first home more affordable than you might expect. Whether you’re drawn to Detroit’s revitalized neighborhoods, the lakefront serenity of Traverse City, or the outdoor beauty of the Upper Peninsula, buying a house in Michigan in 2025 comes with several financial support options.
Michigan Housing Market Snapshot (2025)
| Metric | Value | Source |
| Median Home Price (Jan 2025) | $245,800 | Redfin |
| Median Down Payment (Dec 2024) | $27,500 | Attom |
| Most Affordable Counties | Luce, Gogebic, Oscoda, Iron, Clare, Baraga, Ontonagon | Various |
MI Home Loan Program
The MI Home Loan is Michigan’s flagship mortgage product, backed by the Michigan State Housing Development Authority (MSHDA). It’s open to first-time buyers across the state and repeat buyers in designated target areas.
| Feature | Description |
| Loan Type | 30-year fixed-rate |
| Eligible Loan Formats | Conventional, FHA, VA, USDA |
| Max Home Price | $224,500 |
| Minimum Credit Score | 640 |
| Income Limits | Area-specific (varies by county) |
Advantages:
- Available to both first-time and qualifying repeat buyers
- May be combined with down payment assistance programs
Limitations:
- Repeat buyers restricted to target areas only
- Credit score minimum excludes some applicants
Michigan Down Payment Assistance Programs (2025)
MI 10K DPA Loan
This program provides up to $10,000 in down payment, closing cost, and prepaid expense assistance with zero interest and deferred repayment.
| Feature | Details |
| Max Assistance | $10,000 |
| Interest Rate | 0% |
| Monthly Payments | None |
| Repayment Terms | Due when you move, refinance, or sell |
| Lender Network | 130+ approved lenders |
Note: This loan must be paired with the MI Home Loan. It’s ideal for buyers who need upfront cash support without increasing their monthly payments.
First-Generation Homebuyer Program (Launched 2025)
Designed for buyers whose parents never owned a home, this pilot initiative offers up to $25,000 in assistance.
| Feature | Details |
| Max Assistance | $25,000 |
| Eligible Loans | Conventional, FHA, USDA (via MI Home Loan) |
| Repayment Terms | Deferred until sale, refinance, or move |
| Education Requirement | In-person homebuyer education required |
| Compatibility | Not compatible with MI 10K DPA Loan |
The generous assistance amount can significantly reduce upfront costs, but the education requirement and compatibility limits should be considered.
Local Michigan First-Time Homebuyer Programs (2025)
NACA Detroit Neighborhood Initiative
Detroit residents can access a no-down-payment mortgage with no credit score requirement, no mortgage insurance, and below-market interest rates.
| Feature | Details |
| Credit Score Requirement | None |
| Mortgage Insurance | Not required |
| Interest Rates | Below market |
| Membership Requirement | Must join NACA and complete their homebuyer program |
NACA’s program stands out for inclusivity but does require upfront commitment to membership and coursework.
National Faith Down Payment Assistance (Metro Detroit)
Qualified buyers can access up to $13,999 in forgivable assistance for down payment, closing, and prepaid costs.
| Feature | Details |
| Max Assistance | $13,999 |
| Income Limit | ≤ 80% Area Median Income |
| Max Home Price | $218,000 |
| Occupancy Requirement | Live in the home for 5 years |
| Education Requirement | HUD-approved course |
Funds are fully forgiven after five years of occupancy, making this an attractive option for those planning to stay long-term.
Grand Rapids Homebuyer Assistance Fund
This program supports buyers within Grand Rapids city limits by offering forgivable assistance up to $7,500.
| Feature | Details |
| Max Assistance | $7,500 |
| Forgiveness Period | 5 years |
| Income Limits | Yes (varies) |
| Liquid Asset Cap | $10,000 |
| Property Eligibility | Must fall within HUD price limits |
This fund works best for buyers with moderate savings who plan to remain in their home for at least five years.
Additional Options for Michigan Homebuyers
Mortgage Credit Certificate (MCC)
The MCC provides a federal tax credit equal to 20% of the mortgage interest paid annually (up to $2,000/year).
| Feature | Details |
| Annual Savings | Up to $2,000 |
| Loan Compatibility | Cannot be used with MI Home Loan or FHA 203(k) |
| Cost | $400 MCC fee plus potential $100 lender charge |
Ideal for long-term homeowners, this credit offsets your annual tax liability significantly.
National Loan Programs Available in Michigan
| Loan Type | Minimum Down | Highlights |
| FHA Loan | 3.5% | Credit scores as low as 580 |
| VA Loan | 0% | Exclusive to veterans and active military |
| USDA Loan | 0% | Available in eligible rural areas |
| HomeReady / Home Possible | 3% | Flexible income limits, low rates |
Each national program has distinct advantages. Your eligibility depends on credit history, income, and the property’s location.
How to Get Started as a Michigan First-Time Homebuyer
Taking the right first steps increases your odds of success. Focus on these actions:
- Improve Your Credit: Aim for 640+ to qualify for most programs. Pay bills on time, reduce balances, and check your report for errors.
- Research Lenders: Use MSHDA’s lender locator tool to find approved, reputable lenders in your area.
- Compare Offers: Review loan estimates, interest rates, and fees. Don’t just look for the lowest rate—consider customer service and program compatibility too.
Next Steps
With strong support from Michigan’s first-time homebuyer programs, owning a home in 2025 is more achievable than ever. Whether you’re looking for a downtown condo in Grand Rapids or a family-friendly home in a quiet rural county, Michigan has a program designed to help. Down payment assistance, favorable loan terms, and tax incentives can all work in your favor.
Ready to take the next step? Contact us to explore your best options and move forward with confidence.
FAQs About Michigan Homebuyer Programs
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