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MSHDA Down Payment Assistance

Michigan

Last verified
See what you qualify forOfficial program site →
Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$544,233

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is MSHDA Down Payment Assistance?

MSHDA Down Payment Assistance is a deferred second loan for homebuyers in Michigan.

  • Up to $7,500 in down payment assistance for eligible Michigan homebuyers; 0% interest deferred repayment subordinate loan; must be paired with MSHDA MI Home Loan first mortgage; repayable upon sale, refinance, or transfer.
  • Up to $7,500 in down payment and closing cost assistance.
  • 0% interest deferred subordinate loan with no monthly payments.
  • repayment deferred until sale, refinance, or transfer of property.
  • must be used with MSHDA MI Home Loan first mortgage.
  • available statewide to eligible Michigan homebuyers.
  • Funding comes from State.

How much assistance does it provide?

MSHDA Down Payment Assistance offers up to $10,000 in assistance.

  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

MSHDA Down Payment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Sale, Refinance, No Longer Primary, and Transfer of Title.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

MSHDA Down Payment Assistance 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 minimum 640 credit score
  • A completed homebuyer education course
  • Residency: No Requirement
  • Citizenship or immigration status: U.S. Citizen or Permanent Resident

The program excludes

  • Purchases above the $544,233 price cap
  • 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?

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

  • 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?

MSHDA Down Payment Assistance caps the purchase price at $544,233.

  • Eligible property types include Single Family, Condo, and Townhouse.

Where does it apply?

MSHDA Down Payment Assistance serves buyers purchasing anywhere in Michigan.

How do you apply?

Applications for MSHDA Down Payment Assistance go through the administering agency, 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 the administering agency to reserve funds

    Funds are reserved through First-Come-First-Served, 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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