Down Payment Assistance in Michigan, Explained Properly
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Almost every page written about MSHDA calls it a first-time buyer program. Across most of Michigan that is not the rule that applies.
The sentence that changes the question
MSHDA publishes its income and sales price limits as one table, and at the foot of that table sits a two-line legend most people never read. Non-targeted areas: must be a first-time homebuyer. Targeted areas: may be a first-time homebuyer or repeat homebuyer.
Read what that does. It makes the first-time requirement a property question rather than a borrower question. Whether you have owned before stops mattering the moment the address is in a targeted area.
And in Michigan, most addresses are.
| Counties | Status |
|---|---|
| 66 | Targeted in their entirety |
| 17 | Split, with named cities and townships targeted |
| 0 | No targeted area at all |
Sixty-six of eighty-three counties, targeted end to end. The full picture, and what it means if you have owned before.
Where the rule still bites
The seventeen split counties are not a random seventeen. Detroit sits in Wayne. Grand Rapids sits in Kent. Flint is in Genesee. Lansing's suburbs are in Clinton and Eaton. Oakland, Macomb, Ottawa, Muskegon, Saginaw and Jackson are on the list too.
That is most of Michigan's population. So the honest version is this: the first-time buyer rule binds where most Michiganders live, and does not bind across most of the state's map. Which side of that you are on depends on the address, sometimes down to the township line. Wayne County · Kent County.
What the assistance actually is
The MI 10K DPA Loan provides up to $10,000 toward down payment, closing costs and prepaid expenses. It is an interest-free loan with no monthly payments, available statewide, and it has to be paired with a MSHDA MI Home Loan first mortgage.
One detail worth noticing: MSHDA states that max financing is not required. Plenty of assistance programs force you to borrow the maximum before they will help. This one does not. The assistance in detail.
The repayment trigger people miss
Repayment is deferred until certain events, and MSHDA lists three: payoff of the first mortgage, the sale or refinance of the home, or when the home is no longer owner-occupied.
That third one is unusual. In Illinois and Ohio the assistance comes due on a sale or a refinance and nothing else. In Michigan, moving out and renting the house can end owner-occupancy and make the money repayable while you still own it. Why that matters before you plan a rental.
Where to start
- Income limits, from $98,400 to $170,760 depending on the address.
- The full eligibility test.
- The $566,355 sales price limit, one number statewide.
- Calculators, to size the assistance and check your income band.
Frequently asked questions
Do you have to be a first-time buyer for MSHDA down payment assistance?
Only in non-targeted areas. MSHDA's limits sheet states it directly: non-targeted areas require a first-time homebuyer, while targeted areas may be a first-time homebuyer or a repeat homebuyer. Because 66 of Michigan's 83 counties are targeted in their entirety and another 17 contain targeted cities and townships, a repeat buyer qualifies across most of the state. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
How much is Michigan down payment assistance?
The MI 10K DPA Loan provides up to $10,000 toward down payment, closing costs and prepaid expenses. It is an interest-free loan with no monthly payments and is available statewide, but it must be combined with a MSHDA MI Home Loan first mortgage. MSHDA also states that max financing is not required, so you are not forced to borrow the maximum to use it.
When do you have to pay back the MI 10K DPA loan?
MSHDA defers repayment until certain events, which it describes as payoff of the first mortgage, the sale or refinance of the home, or when the home is no longer owner-occupied. That last trigger is worth planning around, because moving out and renting the property can end owner-occupancy and make the assistance repayable even though you still own the home.
What is the sales price limit for MSHDA in Michigan?
$566,355 statewide after June 1, 2026. It is the same figure on every row of MSHDA's limits table, so unlike the income limit it does not vary by county anywhere in Michigan. With Traverse City the most expensive metro at a typical value of $422,480, the cap leaves $143,875 of headroom and does not bind at typical values anywhere in the state.
What credit score do you need for MSHDA?
A minimum credit score of 640 is required for the MI Home Loan, which is the first mortgage the MI 10K DPA attaches to. A housing education class is also required, and MSHDA requires a homebuyer education certificate of completion for all homebuyers on the assistance.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. MSHDA program terms, income limits and sales price limits are set by the Michigan State Housing Development Authority and change; figures here carry the date we verified them against MSHDA's published documents. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address. Loans are subject to borrower and property qualification.