Down Payment, Closing Cost, and Other First Time Home Buyer Programs in Michigan
Are you looking to buy your first home in Michigan? Would you like know about programs available to help you purchase that first home? The state of Michigan provides programs, incentives and grants for its residents who are first time home buyers and need help with closing costs and the down payment. First time buyers can get up to $7,500 in grant money to help with the down payment. The grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the first time home buyer grant programs that are available to Michigan residents.
Up to $7,500 may be available from the Michigan State Housing Development Authority (MSHDA) to help you come up with the money needed for the down payment. This program is for to low- to moderate-income homebuyers, depending on the home location and your family size. The program includes a homebuyer education class that will give you good information as you take the step toward homeownership. To get complete information on this very helpful resource, just go to Michigan first time home buyer grant programs.
Maximum help is $7,500
Available with MSHDA’s FHA or Rural Development first mortgages.
Funds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a qualified home inspector.
Zero-interest, non-amortizing loan with no monthly payments.
The loan is due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full.
The contact information to reach the Michigan State Housing Development Authority is:
735 E. Michigan Ave
P.O. Box 30044
Lansing, Michigan 48909
Telephone: (517) 373-8370
Fax: (517) 335-4797
Other First Time Home Buyer Local Programs in Michigan
In addition to the 1st time buyer programs described above, the U.S. Department of Housing and Urban Development provides funding to residents in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to first time home owner grants in Michigan.
Here is the contact information for the HUD office in Michigan:
Detroit Field Office
McNamara Federal Building
477 Michigan Avenue
Detroit, MI 48226-2592
Phone: (313) 226-7900
Fax: (313) 226-5611
There are also these local first time home buyer programs:
DICSA is a private non-profit Community Action Agency with its main office located in Iron Mountain, Michigan. Dickinson and Iron County residents can acquire information through the agency about many programs and services available to them. DICSA manages eleven senior centers in the area that serve the needs of the community. DICSA also keeps the public informed of upcoming events in which the agency is involved.
Once you have been approved for our assistance, we can provide from $1,000 to $3,000 for your closing costs, prepaids, and/or down payment to purchase a home in the city of Jackson (FHA does not permit us to provide down payment). If you are purchasing a home outside the city limits of Jackson, but within Jackson County, we will guide you in obtaining a MSHDA mortgage and down payment assistance.
Lansing Down Payment Assistance (DPA) Program (517) 372-5980
The goal of the Program is to expand home ownership opportunities for income-eligible households and to increase homeownership within the city of Lansing. Assistance in the amount of 6% of the acquisition cost, is available to each eligible household for down payment and reasonable closing costs incurred in the purchase of property located within the Lansing city limits. Homes purchased with Purchase funds cannot be located in the 100-year flood plain.
Program subsidies are provided as a zero-interest loan. Half of the loan amount is forgiven after five-years. The other half becomes due and payable in full when the house ceases to be the loan recipient’s principal place of residence; however, if the loan recipient purchases another home within the Lansing city limits to be occupied as their principal place of residence, the loan will be completely forgiven at that time. The city’s loan is secured by a promissory note and mortgage subordinate to those of the primary lenders. First mortgages must have a fixed-rate and include the escrows of taxes and insurance.
Lansing Home Ownership Program for Employees (LHOPE) (517) 483-4593
Schoolcraft County Homebuyer Assistance Program (HAP) (906) 341-5126
The following is a brief overview of the program requirements and stipulations:
- The assistance to the homebuyers is in the form of a 0% interest deferred loan to assist with the down-payment, closing costs and rehabilitation of the purchased home. Homebuyers must contribute at least 1% of the home sale price towards the down-payment.
- Homebuyers must complete pre-purchase counseling and qualify for a mortgage, no land contracts are allowed.
- The maximum assistance available through the Schoolcraft County Homebuyer Assistance Program is $10,000.00 for down-payment and closing costs. An additional amount of up to $20,000.00 may be used for rehabilitation purposes.
- All of the down-payment and rehabilitation assistance will be set up as a second mortgage on the home. The amount of assistance will be held as a 0% interest deferred lien, which will become due upon the transfer of ownership of the property.
Wayne County First Time Home Buyers Program (FTHB) (313) 224-5011
Wayne County receives an annual allocation from the U.S. Department of Housing and Urban Development (HUD) under the HOME Investment Partnerships Program (HOME Program). The Department of Economic Development utilizes these funds to offer several programs to expand the long-term supply of decent, safe, sanitary and affordable housing throughout Wayne County. The HOME Program allows the County to support the development of for-sale and rental housing developments that are made available to low and very-low-income households. Projects may involve new construction, rehabilitation, or homebuyer assistance for existing homes. Wayne County partners with non-profit organizations to implement HOME projects. Projects located in the 37 HOME participating communities listed below are eligible for assistance.
Eligibility & Application
HOME program services are for income-eligible families and individuals whose aggregate household income is at or below 80% of Wayne County’s area median income listed below.
- 1 person household $39,150
- 2 person household $44,750
- 3 person household $50.350
- 4 person household $55,900
- 5 person household $60,400
- 6 person household $64,850
- 7 person household $69,350
- 8 person household $73,800
Participating Eligible Communities
Allen Park, Belleville, Brownstown Township, Ecorse, Flat Rock, Garden City, Gibraltar, Grosse Ile Township, Grosse Pointe, Grosse Pointe Farms, Grosse Pointe Park, Gross Pointe Shores, Grosse Pointe Woods, Hamtramck, Harper Woods, Highland Park, Huron Township, Inkster, Lincoln Park, Livonia, Melvindale, Northville, Northville Township, Plymouth, Plymouth Township, River Rouge, Riverview, Rockwood, Romulus, Southgate, Sumpter Township, Taylor, Trenton, Van Buren Township, Wayne, Woodhaven and Wyandotte.
Wayne County offers first time homebuyers down payment and closing cost assistance when purchasing a home in any of the 37 participating communities. The assistance comes in the form of an interest-free deferred loan that is due upon the sale of the property by the loan recipient. For an existing property, the loan amount is $5,000. For a newly constructed home, the loan amount is $10,000.
Each homebuyer must complete a home ownership counseling program in order to be eligible for assistance. Currently Wayne County has a contract with the National Faith Homebuyers Program to provide a series of classes in credit, buying a home, qualifying for a mortgage, home maintenance, and other related topics. Each potential homeowner earns a certificate of completion after a series of classes. First time homebuyers are defined as a purchaser who has not owned a home within the last three years. Interested person should contact National Faith Community Homebuyers at (313) 255-9500 to enroll in the program.