KNHS Down Payment Assistance

What is KNHS Down Payment Assistance?

KNHS Down Payment Assistance is a second mortgage for homebuyers in Kalamazoo, Michigan, administered by Kalamazoo Neighborhood Housing Services (KNHS).

• KNHS, a NeighborWorks America and HUD-certified housing counseling agency serving the Kalamazoo region, offers down payment assistance to income-eligible buyers who are ready to purchase but need help with their down payment. Loan eligibility is determined by household income limits and funder/underwriting requirements, and rates are set monthly. Buyers also complete KNHS homebuyer education (in-person, Zoom, eHome America, or Framework).
• Down payment assistance loan paired with first mortgage.
• HUD-certified homebuyer education and counseling.
• Financial readiness coaching.
• Local nonprofit with regional focus.
• Funding comes from KNHS / NeighborWorks America; supported by City of Kalamazoo, MSHDA, LISC Kalamazoo, Kalamazoo Community Foundation, United Way, Kalamazoo County Land Bank, Kalamazoo County Housing for All millage, and local banks/foundations.

Do you have to pay it back?

KNHS Down Payment Assistance is a second mortgage and is repaid under the terms set by Kalamazoo Neighborhood Housing Services (KNHS).

• 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?

KNHS Down Payment Assistance is open to buyers who will live in the home as their primary residence.

What are the income limits?

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

• Down payment assistance program generally serves households at or below 80% of area median income; eligibility determined by household income limits and funder/underwriting requirements. (KNHS also operates programs serving up to 120% AMI.).
• The limit applies to total household income, not only the borrower’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?

KNHS Down Payment Assistance can be used for Single Family.

Where does it apply?

KNHS Down Payment Assistance serves buyers purchasing in Kalamazoo, Michigan.

• The program targets specific areas: Kalamazoo region; focus neighborhoods include Vine, Edison, Northside, Eastside, and West Douglas.
• Targeted neighborhoods: Vine, Edison, Northside, Eastside, West Douglas.

How do you apply?

Applications for KNHS Down Payment Assistance go through Kalamazoo Neighborhood Housing Services (KNHS), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through KNHS Homebuyer Education (in-person at 1219 S. Park Street, Kalamazoo, and on Zoom); eHome America; Framework Homeownership.

2. 2

   Contact Kalamazoo Neighborhood Housing Services (KNHS) to reserve funds

   Funds are reserved through Open enrollment; prospective buyers contact KNHS directly to determine eligibility, and are subject to availability.

3. 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.