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Detroit Down Payment Assistance Program

City of Detroit Housing and Revitalization Department (implemented by National Faith Homebuyers) · Detroit, Michigan

Last verified
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Assistance

$25,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Grant

Not repaid

What is Detroit Down Payment Assistance Program?

Detroit Down Payment Assistance Program is a grant for homebuyers in Detroit, Michigan, administered by City of Detroit Housing and Revitalization Department (implemented by National Faith Homebuyers).

  • City of Detroit grant program (Round 3 currently open) providing up to $25,000 toward down payment, prepaids/interest-rate buy-down, closing costs, and principal reduction for income-eligible Detroit residents purchasing a home as their principal residence. Funds are sent to closing, not directly to the buyer. Total assistance cannot exceed 50% of the purchase price.
  • Up to $25,000 toward down payment, closing costs, prepaids, interest rate buy-down, and principal reduction.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD Community Development Block Grant (CDBG) and CDBG-Disaster Recovery (CDBG-DR).

How much assistance does it provide?

Detroit Down Payment Assistance Program offers up to $25,000 in assistance.

  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — City of Detroit Housing and Revitalization Department (implemented by National Faith Homebuyers) determines any individual award.

Do you have to pay it back?

Detroit Down Payment Assistance Program is structured as a grant, so it is not repaid.

  • Repayment is triggered by Pro-rated repayment if the home is not maintained as the principal residence for three years after the grant is awarded.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Detroit 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
  • Must have lived in the City of Detroit for the last 12 months OR prove loss of a Detroit home to property-tax foreclosure 2010-2016. Total assistance capped at 50% of purchase price and limited by CDBG duplication-of-benefits calculation. A visual lead inspection (risk assessment) is required. Must have a signed purchase agreement and be pre-qualified by a lender; applied via Neighborly software. Prioritization for residents impacted by the August 2023 Detroit flooding or 2010-2016 tax-foreclosure loss. Cannot be used more than once. Round 3 funded with $1.7M CDBG + $8.77M CDBG-DR to assist up to 450 buyers.

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?

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

  • Household income at or below 80% of HUD Area Median Income, adjusted for household size (e.g., 1-person $58,700; 4-person $83,850 per one published table on the program page).
  • 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?

Detroit Down Payment Assistance Program caps the purchase price as follows: No stated maximum purchase price, but total assistance cannot exceed 50% of the purchase price.

Where does it apply?

Detroit Down Payment Assistance Program is a federal program, so it is not limited to Michigan.

  • The program gives priority to designated target areas, so the address matters as well as the county.

How do you apply?

Applications for Detroit Down Payment Assistance Program go through City of Detroit Housing and Revitalization Department (implemented by National Faith Homebuyers), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact City of Detroit Housing and Revitalization Department (implemented by National Faith Homebuyers) to reserve funds

    Funds are reserved with the provider 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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