Michigan’s MSHDA offers a familiar deferred down payment loan across the state, a larger version in hundreds of targeted ZIP codes, and a newer grant aimed squarely at first-generation buyers.
This guide covers what is actually available to first-time buyers in Michigan in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Michigan first-time home buyer guide.
The MSHDA and its home loan programs
Michigan’s first-time buyer programs are run by the Michigan State Housing Development Authority (MSHDA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- MI Home Loan — a 30-year fixed mortgage for first-time buyers statewide (and repeat buyers in targeted areas)
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Michigan
Down payment assistance is the heart of what MSHDA offers, and Michigan gives buyers more than one way to get it. Assistance comes as a zero-interest deferred second, with a bigger amount available in designated ZIP codes.
- MI DPA Loan — deferred second at 0% interest, up to $7,500, with no monthly payment, due on sale/refinance/payoff.
- MI 10K DPA Loan — deferred second at 0% interest, up to $10,000, available in 236 designated ZIP codes.
- MI First-Generation Down Payment Assistance — grant, up to $25,000 for first-generation buyers (grant-funded and limited — verify availability).
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $200,000 home in Michigan, the standard MI DPA Loan provides up to $7,500 as a zero-interest second with no monthly payment. If your ZIP code is one of the 236 targeted areas, the MI 10K DPA Loan bumps that to $10,000. First-generation buyers may qualify for up to $25,000 through a grant program launched in 2025, though its funding is limited and can be exhausted — confirm current availability with MSHDA.
Who qualifies in Michigan?
Every program sets its own rules, and they change periodically, but the common requirements in Michigan look like this:
- Income limits. MSHDA sets income limits by county and household size.
- First-time status. First-time status is required statewide; repeat buyers may qualify in targeted areas.
- Credit score. A minimum of 640 applies (660 for manufactured homes). Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. A homebuyer education class is required.
- Purchase price limits. A maximum sales price applies (recently around $224,500 — verify the current figure).
Michigan programs worth knowing about
Beyond the standard offerings, Michigan aims extra help at specific buyers and places. Watch for:
- MI First-Generation DPA — up to $25,000 for buyers whose parents did not own a home
- MI 10K DPA — the larger amount in 236 designated ZIP codes
- Targeted-area eligibility — opens the program to repeat buyers
Mortgage Credit Certificates in Michigan
MSHDA offers a Mortgage Credit Certificate that can provide a federal tax credit on part of your mortgage interest, potentially for the life of the loan. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Michigan assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Michigan program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates MSHDA loans, so ask directly which MSHDA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: MSHDA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with MSHDA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Michigan first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Michigan?
First-time status is required statewide; repeat buyers may qualify in targeted areas.
What credit score do I need for MSHDA programs?
A minimum of 640 applies (660 for manufactured homes). Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Michigan assistance with an FHA, VA, or USDA loan?
Yes. MSHDA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
What is the MI 10K DPA Loan and who can get it?
The MI 10K DPA Loan provides up to $10,000 in down payment help — more than the standard $7,500 statewide amount — but only for homes in one of 236 designated Michigan ZIP codes. Like the standard version, it is a zero-interest second with no monthly payment, repaid when you sell, refinance, or pay off the loan. Ask a MSHDA lender whether your target ZIP qualifies.
More Michigan city guides
Buying in a specific Michigan metro? See our first-time buyer guides for Detroit, each covering the city’s own local down payment programs.
Looking specifically for grants in Michigan?
If you want to zero in on grant and forgivable money — the help you do not pay back — see our focused guide to first-time home buyer grants in Michigan.