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City of East Lansing Down Payment Assistance Program

City of East Lansing Dept. of Planning, Building & Development (CDBG), applications processed by Capital Area Housing Partnership (CAHP) · East Lansing, Michigan

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Assistance

$1,000–$30,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 7 years

What is City of East Lansing Down Payment Assistance Program?

City of East Lansing Down Payment Assistance Program is a forgivable loan for homebuyers in East Lansing, Michigan, administered by City of East Lansing Dept. of Planning, Building & Development (CDBG), applications processed by Capital Area Housing Partnership (CAHP).

  • The City of East Lansing operates a CDBG/HOME-funded Down Payment Assistance Program providing up to $30,000 (plus up to $5,000 in repairs) toward down payment, first-mortgage principal reduction, or closing costs for income-eligible homebuyers purchasing in select East Lansing neighborhoods. Assistance is a zero-interest second mortgage that is 100% forgivable after seven years of owner-occupancy. Applications are processed through Capital Area Housing Partnership.
  • Up to $30,000 toward down payment/first-mortgage reduction/closing costs.
  • Up to $5,000 in repairs.
  • 0% interest, forgivable after 7 years.
  • Funding comes from Federal CDBG and HOME funds allocated to the City of East Lansing.

How much assistance does it provide?

City of East Lansing Down Payment Assistance Program offers between $1,000 and $30,000 in assistance.

  • Amounts are the program's published maximums, not an offer — City of East Lansing Dept. of Planning, Building & Development (CDBG), applications processed by Capital Area Housing Partnership (CAHP) determines any individual award.

Do you have to pay it back?

City of East Lansing Down Payment Assistance Program is forgiven after 7 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, transfer, refinance, or home ceasing to be the borrower's principal residence before the end of the affordability period; 100% forgiven after the period.
  • The assistance is recorded in second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of East Lansing Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Capital Area Housing Partnership homebuyer education course
  • Residency: Home must be purchased within the City of East Lansing; targeted to select eligible neighborhoods
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. LOAN TERM: zero-interest forgivable second mortgage, $1,000-$30,000, 100% forgiven after 7 years of owner-occupancy; recapture if sold/transferred/refinanced or not owner-occupied within 7 years. Can also fund up to $5,000 in repairs. Distinct from the Ingham County DPA (also CAHP-administered) and the City of Lansing DPA. ACTIVITY GAP: per City officials (Spartan Newsroom, Oct 16 2025) the program has not funded any buyer since 2020 due to the mismatch between CDBG/HOME income limits and rising home prices (95 households assisted through 2020); program remains on the books and open to applicants but is effectively dormant - confirm with the City before publishing. GAP NOTES (blank): exact dollar income limits, max purchase price, min credit score, max DTI, min contribution, asset limits, specific eligible neighborhoods, current funding cap. City program pages did not render via fetch; details corroborated from CAHP partner page and an Oct 2025 City-sourced report.

The program excludes

  • New construction
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of East Lansing Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • HUD CDBG/HOME low- to moderate-income limits (generally <=80% AMI) for the Lansing-East Lansing MSA. Since 2020 the gap between the income ceiling and rising local home prices has prevented new awards.
  • The limit applies to total household income, not only the borrower&rsquo;s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of East Lansing Down Payment Assistance Program can be used for Single Family.

  • New construction is not eligible.

Where does it apply?

City of East Lansing Down Payment Assistance Program serves buyers purchasing in East Lansing, Michigan.

  • The program gives priority to designated target areas, so the address matters as well as the county.
  • Targeted neighborhoods: Select/eligible East Lansing neighborhoods (per City CDBG program area).

How do you apply?

Applications for City of East Lansing Down Payment Assistance Program go through City of East Lansing Dept. of Planning, Building & Development (CDBG), applications processed by Capital Area Housing Partnership (CAHP), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Capital Area Housing Partnership homebuyer education course.

  2. Contact City of East Lansing Dept. of Planning, Building & Development (CDBG), applications processed by Capital Area Housing Partnership (CAHP) to reserve funds

    Funds are reserved through Applications via Capital Area Housing Partnership; limited funds available, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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