Michigan’s down payment assistance situation in 2026 is simpler than it looks online — because two of the three programs you will read about have closed. MSHDA had an ambitious run of pilots, and the money ran out.
Here is what is actually open, and what to ignore.
MI 10K DPA Loan — the one that is open
This is currently MSHDA’s only active down payment assistance product, and it is available statewide.
- Up to $10,000 for down payment, closing costs and prepaids.
- Interest-free (0%) deferred loan with no monthly payments.
- Not forgivable. Repayment is deferred until you pay off the first mortgage, sell, refinance, or stop occupying the home.
- Must be paired with a MSHDA MI Home Loan.
- Maximum financing is not required — you do not have to borrow the maximum to qualify.
- A homebuyer education certificate of completion is required for all buyers.
Status: active and accepting applications. Unlike several other states, Michigan’s deferred assistance is genuinely 0% — no accruing interest to worry about. It is a clean product. You simply pay the $10,000 back at the end.
Two programs that have closed
Both of these are still listed as available on national aggregator sites. They are not.
MSHDA First-Generation DPA — up to $25,000 — CLOSED
MSHDA states plainly on its own page that the First-Generation Down Payment Assistance Program is closed as all funds have been exhausted. It launched in February 2025 as an $8 million pilot projected to serve just over 320 households across all 83 counties.
For reference, its first-generation definition was broader than most: you had not owned a home in the past three years and your parents or legal guardians did not currently own and had not owned a home in that period. Aging out of foster care or court emancipation also qualified. It required face-to-face education with a HUD-certified counselor, a minimum 1% borrower cash investment, and could not be combined with the MI 10K DPA.
One caution if you find archived material: MSHDA’s own pages carried conflicting sales price caps for this program — $544,233 on one page and $224,500 on another. Since it is closed, it is moot, but it is a reminder to verify figures against the current program page rather than trusting a cached one.
MSHDA Rate Relief Mortgage — CLOSED
Not a down payment program — it was a one-point rate reduction for buyers at or below 80% AMI, funded by a $50 million bond purchase from FHLBank Indianapolis. MSHDA confirms all funds are exhausted and it is no longer accepting applications.
MI Home Loan requirements and limits
The MI 10K DPA rides on the MI Home Loan, so these are the terms that gate your access.
- Minimum credit score 640.
- First-time buyers statewide, defined as no ownership in the past three years. Repeat buyers qualify only in MSHDA targeted areas.
- Sales price limit: $566,355 statewide, effective June 1, 2026.
- Homebuyer education required.
Income limits by area (effective June 1, 2026)
Set by county or area and household size, split at one-to-two people versus three or more:
- Wayne County (targeted areas): $125,760 / $146,720.
- Oakland County (targeted areas): $125,760 / $146,720.
- Kent County (targeted areas): $127,920 / $149,240.
- Washtenaw County: $170,760 / $199,220.
Note how much higher Washtenaw runs — limits vary substantially by county, so check yours specifically rather than assuming a statewide figure.
What this means practically
Michigan buyers in 2026 have one straightforward option: $10,000, interest-free, deferred until you sell. That is genuinely useful in a state where the median home price makes $10,000 a meaningful share of a down payment.
What Michigan no longer has is a first-generation program. If you were counting on the $25,000 First-Generation DPA, that money is gone, and there is no announced replacement. Whether a future legislature funds another round is unknown.
- Confirm your county income limit against the June 2026 figures — they vary a lot across Michigan.
- Complete homebuyer education and keep the certificate; it is required.
- Get pre-approved with a MSHDA participating lender for the MI Home Loan, then add the MI 10K DPA.
- Ignore any site still advertising the First-Generation DPA or Rate Relief Mortgage — both are closed, confirmed on MSHDA’s own pages.
- Check city and county programs separately. Detroit, Grand Rapids and other municipalities run their own assistance, and that is where forgivable money tends to live in Michigan.
Frequently asked questions
How much down payment assistance can I get in Michigan?
Up to $10,000 through the MI 10K DPA Loan, MSHDA’s only currently active down payment assistance product. It is interest-free and deferred, paired with a MSHDA MI Home Loan.
Is the MSHDA First-Generation DPA still available?
No. MSHDA states on its own website that the program is closed and all funds have been exhausted. It was an $8 million pilot serving roughly 320 households. Several national websites still list it as available.
Is MI 10K DPA forgivable?
No. It is a 0% interest deferred loan with no monthly payments, but the full amount is repaid when you pay off your first mortgage, sell, refinance, or stop living in the home as your primary residence.
What credit score do I need for MSHDA assistance?
640 is the minimum for the MI Home Loan, which the MI 10K DPA requires. Individual lenders may apply higher overlays on top of that.
What is the maximum home price for MSHDA programs?
$566,355 statewide, effective June 1, 2026. Income limits vary considerably by county — from about $125,760 in Wayne and Oakland targeted areas up to $170,760 in Washtenaw for a one-to-two person household.
Can repeat buyers use MSHDA down payment assistance?
Only in MSHDA targeted areas. Elsewhere in Michigan you must not have owned a home in the past three years to qualify.