Down Payment Assistance
Down Payment Assistance in Michigan (2026)
Michigan homebuyers can access up to $10,000 in down payment assistance through the Michigan State Housing Development Authority (MSHDA). On the state's $237,491 median home price, that covers roughly 21% of a standard 20% down payment.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The MSHDA Down Payment Assistance (DPA) caps the home purchase price at $481,176 — check that cap against homes you're considering, and the county income limit below.
Primary Program: MSHDA Down Payment Assistance (DPA)
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- Michigan State Housing Development Authority (MSHDA)
- Purchase Price Cap
- $481,176
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Michigan median pre-loaded
Your Savings Plan
Timeline
7.9 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $237,491 Michigan Home
A worked example at Michigan's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Michigan salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $237,491 home is $23,749, and 20% is $47,498. The $10,000 MSHDA Down Payment Assistance (DPA) maximum covers 42% of the first and 21% of the second, leaving $13,749 of a 10% down payment to come from savings, before any closing costs.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Michigan
State Real Estate Transfer Tax
Michigan's state transfer tax is $3.75 per $500 of value (0.75%), for which the seller/grantor is liable, plus a county transfer tax of $0.55 per $500 (up to $0.75 in counties of 2 million+). (MCL 207.521 et seq. (State Real Estate Transfer Tax Act, 1993 PA 330); rate MCL 207.525; liability MCL 207.523). (Michigan Legislature, retrieved 2026-09-14) Under that schedule a $237,491 sale owes $1,781, which the statute puts on the seller.
County real estate transfer tax (1966 PA 134, MCL 207.504): 55 cents per $500 of total value in counties with population under 2,000,000; not more than 75 cents per $500 as authorized by the county board in counties of 2,000,000 or more. (Michigan Legislature, retrieved 2026-09-14)
Recording fees
Statewide register of deeds fee: $30.00 for entering and recording a document regardless of the number of pages (MCL 600.2567(1)(a)); $3 per additional instrument assigned or discharged. (Michigan Legislature, retrieved 2026-09-14)
Michigan State Housing Development Authority (MSHDA): MI Home Loan
MI Home Loan is the first-mortgage programme run by Michigan State Housing Development Authority (MSHDA). (Michigan State Housing Development Authority (MSHDA), retrieved 2026-09-14) Its purchase-price limit is $566,355 (statewide, after June 1, 2026), so a $237,491 home is within it. (Michigan State Housing Development Authority (MSHDA), retrieved 2026-09-14) Down payment help comes through MI 10K DPA Loan: up to $10,000, available statewide. (Michigan State Housing Development Authority (MSHDA), retrieved 2026-09-14) Minimum credit score: 640. (Michigan State Housing Development Authority (MSHDA), retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Michigan?
Michigan's primary DPA program is the MSHDA Down Payment Assistance (DPA), administered by the Michigan State Housing Development Authority (MSHDA). It provides up to $10,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
How much down payment do I need in Michigan after using DPA?
On a $237,491 home (Michigan median), a 20% down payment is $47,498. With the MSHDA Down Payment Assistance (DPA) covering $10,000, your remaining gap would be $37,498. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Michigan down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine Michigan DPA with other assistance programs?
Yes — Michigan's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Michigan down payment assistance?
The MSHDA Down Payment Assistance (DPA) does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Michigan State Housing Development Authority (MSHDA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Michigan
PMI Calculator
Estimate private mortgage insurance on lower down payments
Michigan First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Michigan, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Michigan State Housing Development Authority (MSHDA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Michigan for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about MSHDA Down Payment Assistance (DPA) when you apply.