Key takeaways
- Michigan’s statewide homebuyer help comes from the Michigan State Housing Development Authority (MSHDA): the MI Home Loan mortgage, the MI 10K DPA Loan and a Mortgage Credit Certificate.
- MI 10K DPA gives up to $10,000 as an interest-free loan with no monthly payments, repaid when you sell, refinance or pay off the first mortgage.
- The MI Home Loan needs a 640 credit score, and the sales price limit is $566,355 statewide (after June 1, 2026).
- First-time buyers qualify statewide; repeat buyers can qualify in MSHDA’s targeted areas. Homebuyer education is required.
Michigan doesn’t split its first-time buyer help across several agencies the way some states do. Almost everything runs through the Michigan State Housing Development Authority (MSHDA), which pairs a 30-year MI Home Loan with up to $10,000 in down payment help, and adds a federal tax credit for eligible buyers. In 2025, MSHDA helped 6,193 households buy a home, the most in any calendar year since the agency was created in 1966.
On a $220,000 home with an FHA loan, the 3.5% down payment is $7,700. The MI 10K DPA Loan could cover all of it and put about $2,300 toward closing costs. Here’s how each program works, who qualifies and how to apply.
Michigan homebuyer programs at a glance
Rates and terms checked: Nov. 11, 2026. They change often, so confirm with the provider before you apply. How we review lenders
| Program | Run by | Help | Who it’s for |
|---|---|---|---|
| MI Home Loan | MSHDA | 30-year first mortgage through a MSHDA-approved lender | First-time buyers statewide; repeat buyers in targeted areas; 640+ credit; income and price limits |
| MI 10K DPA Loan | MSHDA | Up to $10,000, 0% interest, no monthly payment, deferred | Buyers using a MI Home Loan who complete homebuyer education |
| Mortgage Credit Certificate (MCC) | MSHDA | Federal tax credit of 20% of the mortgage interest you pay each year | First-time buyers statewide; repeat buyers in targeted areas |
| Housing Education Program | MSHDA and HUD-approved counselors | Homebuyer classes and counseling | Required for MI 10K DPA borrowers |
MI Home Loan
The MI Home Loan is MSHDA’s main mortgage. You get it through a MSHDA-approved lender, not from MSHDA directly, and it can be a conventional, FHA or USDA loan, depending on what you qualify for.
- First-time buyer rule: you haven’t owned a home in the past three years. Repeat buyers can qualify if the home is in one of MSHDA’s targeted areas.
- Credit score: 640 minimum.
- Sales price limit: $566,355 statewide for loans after June 1, 2026.
- Income limit: set by household size and the county where the home is. Check MSHDA’s current income and sales price table before you shop.
MI 10K DPA Loan: up to $10,000
The MI 10K DPA Loan covers up to $10,000 of your down payment, closing costs and prepaid expenses. It’s available statewide and must be paired with a MI Home Loan.
- 0% interest and no monthly payment: nothing accrues while you live in the home.
- When you repay it: when you pay off the first mortgage, sell or refinance the home, or stop living in it as your main residence.
- Education: every buyer must complete homebuyer education and get a certificate of completion.
- No need to max out the loan: MSHDA says maximum financing isn’t required to use it.
Tip: Because the $10,000 is a loan, not a grant, plan for it. If you sell or refinance in a few years, the full amount is due from your proceeds. It’s still often cheaper than waiting years to save the same amount while rents and prices rise.
Michigan Mortgage Credit Certificate
MSHDA’s Mortgage Credit Certificate (MCC) turns 20% of the mortgage interest you pay each year into a dollar-for-dollar federal tax credit, for as long as you keep the original mortgage and live in the home, up to 30 years. The rest of your interest can still be deducted if you itemize. The MCC must be approved before you buy, through an approved MCC lender, and it follows MSHDA’s income and sales price limits.
Example: on a $212,300 loan at an example rate of 6.5%, you’d pay about $13,730 in interest in the first year, so the credit would be worth about $2,746 that year. You can only use as much credit as you owe in federal income tax.
Programs that have ended
You may still see two MSHDA pilots mentioned online. Both have closed because their funds ran out:
- First-Generation Down Payment Assistance offered up to $25,000 to buyers whose parents hadn’t owned a home in the past three years.
- MSHDA Rate Relief Mortgage cut the interest rate by one percentage point for first-time buyers earning up to 80% of the area median income.
If MSHDA opens a new round, it will be listed on its Pathway to Housing page.
Worked example: a $220,000 Michigan home
| Item | Amount |
|---|---|
| Purchase price | $220,000 |
| FHA down payment (3.5%) | $7,700 |
| Loan amount (before FHA’s upfront insurance premium) | $212,300 |
| MI 10K DPA Loan | $10,000 (0%, deferred) |
| Left for closing costs after the down payment | $2,300 |
| Principal and interest at an example 6.5% rate | About $1,342 a month |
| First-year MCC credit (20% of about $13,730 interest) | About $2,746 |
The rate here is only an example; your lender quotes MSHDA’s current rate. The monthly figure leaves out FHA mortgage insurance, property taxes and homeowners insurance, which together can add several hundred dollars a month in Michigan.
Who qualifies
- First-time buyer: no home owned in the past three years, or a home in a targeted area.
- Credit score: 640 minimum for the MI Home Loan.
- Income and price limits: income limits by county and household size; sales price up to $566,355.
- Homebuyer education: required for the MI 10K DPA Loan.
- Owner-occupied: you must live in the home as your main residence.
How to apply
- Check your budget with the home affordability calculator and your debt-to-income ratio.
- Find a MSHDA-approved lender and ask whether you qualify for a MI Home Loan with MI 10K DPA, and whether an MCC makes sense for you.
- Take a homebuyer education class through MSHDA’s Housing Education Program.
- Get preapproved, then shop for a home under the sales price limit for your area.
- Compare Loan Estimates and closing costs; estimate yours with the closing cost calculator.
Michigan budget note: property taxes and local help
In Michigan, your property tax bill can jump after you buy, because the taxable value on a home “uncaps” when it changes hands. Don’t budget with the seller’s current tax bill; ask your lender or the local assessor for an estimate based on your purchase price. Also check your city or county: some, including Detroit, run their own down payment programs, and your lender can tell you what can be combined with MSHDA help.
Federal loan options that work with Michigan programs
The MI Home Loan can be a conventional, FHA or USDA loan, and USDA loans can mean 0% down in eligible rural areas. VA loans are another 0%-down option for eligible veterans. Compare them in our first-time homebuyer programs guide and our FHA vs. conventional comparison, and run payments in the mortgage calculator.
First-time home buyer programs in other states
California Florida Georgia Illinois New York North Carolina Ohio Pennsylvania Texas
Compare FHA, VA, USDA and 3%-down loans nationwide →
Down Payment Assistance Finder: see which programs fit you and about how much →
Frequently asked questions
How much down payment assistance can I get in Michigan?
MSHDA’s MI 10K DPA Loan gives up to $10,000 for the down payment, closing costs and prepaid expenses. It’s an interest-free loan with no monthly payments, repaid when you sell, refinance or pay off your first mortgage.
What credit score do I need for a MSHDA loan?
The MI Home Loan requires a minimum credit score of 640.
Do I have to be a first-time buyer?
Statewide, yes: you can’t have owned a home in the past three years. Repeat buyers can qualify if they buy in one of MSHDA’s targeted areas.
Is MSHDA’s $25,000 first-generation program still available?
No. The First-Generation Down Payment Assistance pilot has closed because its funds were used up. The MI 10K DPA Loan is still available statewide.
Sources: Michigan State Housing Development Authority (MI Home Loan, MI 10K DPA Loan, Mortgage Credit Certificate, Pathway to Housing, First-Generation DPA and Rate Relief Mortgage pages; Income and Sales Price Limits table effective June 1, 2026), Office of Gov. Whitmer (Feb. 18, 2026 press release on MSHDA 2025 results). Program terms checked Nov. 11, 2026; terms, limits and availability change, so confirm with a MSHDA-approved lender. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.