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City of Warren Direct Homebuyer Assistance Program (HOME)

City of Warren Community Development Department (CDBG Technical Committee oversight) · Warren, Michigan

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Assistance

$3,500

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 5 years

What is City of Warren Direct Homebuyer Assistance Program (HOME)?

City of Warren Direct Homebuyer Assistance Program (HOME) is a forgivable loan for homebuyers in Warren, Michigan, administered by City of Warren Community Development Department (CDBG Technical Committee oversight).

  • The City of Warren uses federal HOME funds to provide $3,500 in direct homebuyer (down payment and closing-cost) assistance to low-, moderate- and middle-income households purchasing City-owned properties. The assistance is a forgivable second-mortgage loan, fully forgiven five years after closing if the buyer remains compliant. Buyers must use a 30-year fixed-rate mortgage and contribute at least $1,000 of their own funds.
  • $3,500 forgivable loan covering half of the required down payment plus up to $2,500 in closing costs.
  • Funding comes from Federal HOME Investment Partnerships funds (City of Warren HOME revolving fund).

How much assistance does it provide?

City of Warren Direct Homebuyer Assistance Program (HOME) offers up to $3,500 in assistance.

  • Buyer contribution: Homebuyer must provide at least $1,000 of their own funds toward down payment and closing costs; home inspection and homeowner's insurance costs do not count toward the $1,000.
  • Amounts are the program's published maximums, not an offer — City of Warren Community Development Department (CDBG Technical Committee oversight) determines any individual award.

Do you have to pay it back?

City of Warren Direct Homebuyer Assistance Program (HOME) is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Due if, during the 5-year affordability period, the property is sold, ceases to be the principal residence, is not maintained in reasonable condition, property taxes go unpaid, payments on other property-secured loans are missed, or the property is not kept insured.
  • 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 Warren Direct Homebuyer Assistance Program (HOME) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Recipients must not currently own a home
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Michigan State University Extension - Macomb Office (MSUE); all adult household members must attend 8 hours of homebuyer counseling, offered free
  • Residency: Must purchase a City-owned property located in the City of Warren
  • Citizenship or immigration status: All household members must be U.S. citizens or non-citizens with eligible immigration status
  • DRAFT (dpa-gap-finder 2026-06-11): pending admin review. Only fully amortizing, fixed-rate 30-year mortgages allowed (no interest-only, balloon, ARM, no-doc or stated-income loans); housing DTI ratio max 31% and total DTI max 45%; taxes and insurance must be escrowed; participating lenders must apply and be approved by the City's Community Development Technical Committee; closing-cost caps per Appendix A apply; income-limit table in published PDF is dated April 2018 (HUD updates annually); unconfirmed: current-year income-limit dollar amounts, min_credit_score, max_purchase_price

The program excludes

  • 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 Warren Direct Homebuyer Assistance Program (HOME) limits household income to 80% of the area median income, which varies by county and household size.

  • Annual gross household income at or below 80% of area median income, adjusted for household size, as determined by HUD (income-limit schedule updated annually; published PDF reflects April 2018 HUD limits).
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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 Warren Direct Homebuyer Assistance Program (HOME) can be used for Single Family.

  • New construction is eligible.

Where does it apply?

City of Warren Direct Homebuyer Assistance Program (HOME) serves buyers purchasing in Warren, Michigan.

How do you apply?

Applications for City of Warren Direct Homebuyer Assistance Program (HOME) go through City of Warren Community Development Department (CDBG Technical Committee oversight), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Michigan State University Extension - Macomb Office (MSUE); all adult household members must attend 8 hours of homebuyer counseling, offered free.

  2. Contact City of Warren Community Development Department (CDBG Technical Committee oversight) to reserve funds

    Funds are reserved through Expression of Interest form plus lender pre-approval submitted via listing agent; City Council must approve sale of the City-owned property by resolution, 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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