Michigan First-Time Home Buyer Programs 2026

Michigan Home Buyer Programs Compared (2026)

Michigan buyers can choose from 3 open MSHDA products and 3 open city programs in this guide, and only one of the six is a true grant. Here's how they line up as of November 3, 2026.

Sources: MSHDA program pages and income and sales price limits (6.1.2026); City of Detroit DPA pages and August 12, 2026 professional bulletin; City of Lansing DPA page; City of Grand Rapids HAF page and program summary. All checked November 3, 2026.

The honest summary: the MI 10K is a good deal, but it's a lien on your home, not free money. If you sell in year 4, you pay the $10,000 back out of your sale proceeds. Detroit's grant and the Lansing and Grand Rapids forgivable loans are the ones that can disappear entirely if you stay put long enough.

MSHDA Income and Sales Price Limits by County (June 1, 2026)

MSHDA uses one statewide sales price limit of $566,355 and income limits that change by county, by household size (1 to 2 people, or 3 or more), and by whether the area is "targeted." According to the MSHDA MI Home Loan program page, the price limit took effect June 1, 2026, and the same limits table covers both the MI Home Loan and the MCC.

Source: MSHDA, "MSHDA Income and Sales Price Limits, MI Home Loan, MCC Program," dated 6.1.2026, linked from the MI Home Loan page (opens in a new tab). County order uses Census Bureau July 1, 2025 population estimates. In non-targeted areas you must be a first-time buyer; in targeted areas you may be a first-time or repeat buyer.

Two things stand out. First, these are household income limits, so a working adult child or a partner who isn't on the loan can still count, depending on lender rules. Second, the limits are generous. A household of three in Detroit can earn up to $146,720 and still qualify, which is far above what most people picture when they hear "assistance program."

How Far $10,000 Goes in Michigan's Biggest Counties

Grantsights analysis of U.S. Census Bureau QuickFacts median home values (2020-2024 ACS) shows the $10,000 MI 10K covers 4.3% of Michigan's $231,600 median home value, which is more than the 3.5% minimum down payment on an FHA loan. In cheaper counties it covers the whole FHA down payment with money left for closing costs. In Washtenaw and Oakland, it doesn't.

Calculation: $10,000 divided by the county median value; FHA minimum down payment of 3.5% from HUD's loans page (opens in a new tab). Medians are 2020-2024 ACS values from Census Bureau QuickFacts, which run below 2026 sale prices, so real shortfalls are likely larger.

The takeaway: in Wayne, Genesee and Ingham, the MI 10K alone can get a median-priced buyer to the closing table. In Ann Arbor or Oakland County, it's a contribution, not a solution, and you'll want to price out the MCC and your own savings too.

Local Help in Detroit, Grand Rapids, Lansing, Ann Arbor and Flint

The 5 biggest local markets handle down payment help very differently. Detroit gives a grant, Lansing and Grand Rapids give forgivable loans, and Washtenaw County and Flint don't publish a dollar amount at all.

Detroit: up to $25,000 grant

According to the City of Detroit's Down Payment Assistance Program page, qualifying buyers can get up to $25,000 for down payment, prepaids including interest rate buy-down, closing costs and principal reduction. It's funded with $9 million in Community Development Block Grant (CDBG) and CDBG Disaster Recovery money. Key rules from the city's Apply Now page (opens in a new tab):

• You must have lived in Detroit for the last 12 months, or prove you lost a Detroit home to property tax foreclosure between 2010 and 2016.
• No ownership interest in property in the last 3 years.
• A 1 to 2 unit home in Detroit, kept as your main residence for 3 years, or the grant is repaid on a prorated basis.
• At least $1,000 of your own money, and a housing expense ratio no higher than 35%.
• A HUD-approved homebuyer education course and a visual lead inspection.
• The award can't exceed 50% of the price, and it's limited to your "unmet need" as the city calculates it. You won't automatically get $25,000.
• Households hit by the August 2023 flooding get priority.

The program's main page (opens in a new tab) lists 80% of area median income as $58,700 for one person, $67,100 for two, $75,500 for three and $83,850 for four. The city's Apply Now page still shows an older, lower table ($56,600 for one person), so if you're close to the line, ask the city's intake partner, National Faith Homebuyers, which figure it's using. A City of Detroit bulletin effective August 12, 2026 confirms Detroit DPA can be layered with MSHDA's down payment assistance, in third lien position.

Grand Rapids: up to $7,500 forgivable loan

The City of Grand Rapids Homebuyer Assistance Fund (opens in a new tab) offers up to $7,500 as a zero-interest second mortgage with no monthly payments, forgiven after 5 years as your main residence, per the city's program summary. You need income at or below 80% of area median income (effective June 1, 2026: $59,750 for one person, $68,250 for two, $76,800 for three, $85,300 for four), $10,000 or less in assets after closing, a home inside city limits that passes inspections, and pre-approval from one of the 21 participating lenders the city lists. You apply through the lender, not the city.

Lansing: up to $23,000 forgivable loan

The City of Lansing's Down Payment Assistance page (opens in a new tab) says assistance is based on need and won't exceed $23,000. It's a zero-interest loan behind your first mortgage, forgiven after 5 years for an existing home or 20 years for new construction, and due in full if the home stops being your main residence. Price caps for an existing home are $219,000 in Ingham County and $226,000 in Eaton County, and $294,000 for new construction in either. You must put in at least $1,000, invest any liquid assets above $20,000, and use a fixed-rate first mortgage with taxes and insurance escrowed. FY2026 income limits are $57,500 for one person, $65,700 for two, $73,900 for three and $82,100 for four. The big catch: Lansing's DPA can't be combined with MSHDA down payment assistance, although it can be used with an MSHDA mortgage.

Ann Arbor and Washtenaw County

Washtenaw County's Homebuyer Assistance page (opens in a new tab) says county residents can get homebuyer education and "may be eligible" for down payment help when buying in the county, but it doesn't publish an amount, income limit or funding status. The Ann Arbor Housing Commission runs a Section 8 Housing Choice Voucher homeownership option for current voucher holders. Since the county page lists no figures, call the county's Office of Community and Economic Development before counting on any amount. Washtenaw is also MSHDA's highest-limit county, at $170,760 for 1 to 2 people.

Flint

Grantsights didn't find a current City of Flint down payment program for individual buyers on the city's own website as of November 3, 2026. What Flint buyers do get is MSHDA's targeted-area status: the City of Flint, Genesee Township and Mount Morris Township allow repeat buyers and carry a higher income limit ($118,080 for 1 to 2 people) than the rest of Genesee County ($98,400).

FHA, VA and USDA Loans in Michigan

Three federal loan types do most of the heavy lifting under the MI Home Loan, and HUD puts the FHA minimum down payment at 3.5% of the price. The MI Home Loan isn't a separate loan type; it's MSHDA's version of these, delivered by a participating lender.

• FHA: down payments as low as 3.5%, with easier credit qualifying, according to HUD's loans page (opens in a new tab). For a MI Home Loan, MSHDA's own 640 minimum still applies.
• VA: no down payment if the price isn't higher than the appraised value, though a funding fee may apply, per the VA purchase loan page (opens in a new tab).
• USDA guaranteed loans: for rural areas, with household income up to 115% of median income, according to the USDA Rural Development guaranteed loan page (opens in a new tab). Check the address on USDA's eligibility map before you shop.

For a fuller comparison of these loan types, see the national first-time home buyer guide, and for USDA's direct loan and repair programs, see our USDA housing grants guide.

What MSHDA Doesn't Tell You on Its Program Pages

Grantsights compared MSHDA's program pages with its own limits table and found 4 gaps a buyer should know about before signing anything.

1. The MCC page shows an old price limit. MSHDA's MCC page still says the maximum sales price is $544,233 "after May 1, 2025." The June 1, 2026 limits PDF, which covers the MCC by name, shows $566,355. The newer table is the one to rely on, but ask your MCC lender to confirm in writing if your price falls between those two numbers.
2. "Interest-free" doesn't mean "forgiven." The MI 10K page lists "no monthly payments," which is true, but the loan is due on a sale or refinance. If you refinance when rates drop, MSHDA's page lists refinancing as a repayment event, so plan for the $10,000 to come due.
3. Recapture tax isn't mentioned. The MCC page doesn't mention that the IRS can take back part of the benefit. IRS Form 8828 instructions say that if you sell within the first 9 years after getting an MCC or a loan funded by tax-exempt bonds, you may owe recapture tax, and Form 8828 caps it at 50% of the gain on the sale. The form ties the amount to your income in the year of sale and to whether you sold at a gain, so many sellers owe nothing, but you should know it exists.
4. The First-Generation program is gone. Older news stories and lender pages still advertise MSHDA's $25,000 First-Generation DPA. MSHDA's own page says the program is closed, funds are exhausted, and the waitlist isn't available. MSHDA's February 18, 2026 press release confirms that pilot, and the Rate Relief mortgage pilot, have ended.

One more thing worth knowing: MSHDA's February 18, 2026 release says it made over $1 billion in mortgage and DPA loans to 6,193 buyers in 2025, a record. Popular programs with busy lenders mean you should start early and get a pre-approval from an MSHDA-experienced loan officer, not a general one.

Common Mistakes and Red Flags for Michigan Buyers

Most problems come down to 5 avoidable errors, and almost all of them happen before the purchase agreement is signed.

• Treating the MI 10K as a grant. A common mistake is assuming the $10,000 goes away. It doesn't. If you sell in 6 years for a gain, your title company will pay MSHDA back from the proceeds.
• Stacking programs that don't stack. Lansing's DPA can't be combined with MSHDA DPA, and the closed First-Generation program couldn't be combined with the MI 10K either. Detroit's can. Ask before you budget for two.
• Underestimating closing costs in high-cost counties. In Washtenaw, Oakland and Kent, the $10,000 may not even cover a 3.5% FHA down payment on a median home. Buyers often underestimate how much cash they'll need for inspections, appraisal and prepaid taxes.
• Applying for the MCC too late. MSHDA says the MCC must be applied for and approved before you buy. Once you've closed, it's too late.
• Paying for "grant help." A red flag is any website, caller or seminar charging a fee to get you a Michigan home buyer grant. According to the FTC's government grant scams page (opens in a new tab), no government agency will contact you demanding payment for a grant, and paying by gift card, wire or crypto is a sure sign of a scam. MSHDA programs come through participating lenders, and Detroit's through the city's online application.

If you also need help with repairs after you buy, our guide to home repair grants for low-income homeowners covers the federal and local options.

How to Apply for MSHDA Help, Step by Step

The full MSHDA process has 6 steps, and the order matters, because the MCC and the local programs all need to be in place before closing.

1. Check your numbers. Find your county in the MSHDA limits table above and compare it to your household's total gross income. Confirm your credit score is at least 640.
2. Take the homebuyer education course. MSHDA requires a homebuyer education certificate for the MI Home Loan and MI 10K. Find a class through the MSHDA Housing Education Locator (opens in a new tab). MSHDA says many HUD-approved counseling services are free or low-cost, so ask about fees when you book.
3. Get pre-approved by an MSHDA lender. Use MSHDA's MI Home Loan lender list (opens in a new tab). Ask the loan officer for the MI 10K and, if you want it, the MCC at the same time. For the MCC, check the MCC lender list (opens in a new tab), since not every lender issues it.
4. Add local help if you qualify. Detroit buyers apply online once they have a pre-approval letter and an accepted purchase agreement; the city says a decision takes 2 to 3 weeks after a complete file. Grand Rapids buyers apply through a participating lender. Lansing files go through Capital Area Housing Partnership.
5. Make an offer on a home under the limits. Stay under $566,355 for MSHDA, and under the local caps ($219,000 for an existing home in Lansing's Ingham County portion, for example).
6. Close. The DPA money goes to the closing table, not to you. Keep your MSHDA and city loan documents; you'll need them when you sell or refinance.

For example, a couple in Detroit earning $62,000 a year and buying a $160,000 home with an FHA-backed MI Home Loan would need a $5,600 down payment (3.5%). They're under Detroit's $67,100 limit for two and MSHDA's $125,760 targeted-area limit. The MI 10K could cover that down payment and up to $4,400 of closing costs as a deferred loan. Detroit's DPA could then cover remaining unmet need up to $25,000, specifically limited to 50% of the $160,000 price ($80,000) and the city's own calculation, after the couple puts in their required $1,000. If they stay 3 years, the Detroit money never has to be repaid; the MSHDA $10,000 is still due when they sell or refinance.

Lansing is one city in Michigan where the math works the other way. A family of three earning $70,000 is under both Lansing's $73,900 limit and MSHDA's $143,640 Ingham County limit, but they have to choose between the city's DPA (up to $23,000, forgiven after 5 years) and the MI 10K ($10,000, repaid on sale). For most buyers who plan to stay 5 years, the Lansing loan is the better route.

What to Do If Funds Run Out or You're Denied

Michigan's 3 MSHDA products have no published funding cutoff right now, but local programs work first-come, first-served and can pause between rounds, as Detroit's has done across its 3 phases.

• If a city program is out of money: ask to be told when the next round opens, and don't let a purchase agreement deadline push you into closing without help you were counting on. MSHDA's MI 10K is a fallback in most cities, though not alongside Lansing's DPA.
• If you're over the income limit: check whether your address is in a targeted area, where limits run about 20% higher (for example, $125,760 in Detroit versus $104,800 in the rest of Wayne County).
• If your credit is under 640: a HUD-approved counselor can help build a plan. MSHDA's housing education network says it works with households whether they've been approved, denied or are unsure. Our guide on how to apply for grants as an individual also explains how to tell real help from offers you should skip.
• If buying isn't possible yet: our rental assistance programs guide and the HUD income limits guide explain what's available while you save.

The HUD HOME program guide explains the federal money behind Lansing's and many other local down payment programs, which can help you find a county or nonprofit program that isn't listed here.

If you'd like a quick check of which official programs fit your situation, the free eligibility checker points you to the right official routes. It doesn't hand out grants or apply on your behalf.

For other states, see the California, Texas, Florida, New York and Washington guides.

Sources

• MSHDA, MI Home Loan (opens in a new tab) (price limit effective June 1, 2026; checked November 3, 2026)
• MSHDA, MI 10K DPA Loan (opens in a new tab) (checked November 3, 2026)
• MSHDA, Mortgage Credit Certificate Program (opens in a new tab) (checked November 3, 2026)
• MSHDA, MSHDA Income and Sales Price Limits, MI Home Loan and MCC (opens in a new tab) (dated 6.1.2026)
• MSHDA, First-Generation DPA (opens in a new tab) (closure notice, checked November 3, 2026)
• MSHDA, Achieving Housing Dreams: Blueprint to Homeownership (opens in a new tab) (education requirement and counseling FAQ)
• MSHDA, Housing Education Locator (opens in a new tab)
• MSHDA, MI Home Loan lender list (opens in a new tab) and MCC lender list (opens in a new tab)
• MSHDA, Gov. Whitmer announces MSHDA helps record 6,000 Michiganders become homeowners in 2025 (opens in a new tab) (February 18, 2026)
• City of Detroit, Detroit Down Payment Assistance Program (opens in a new tab), Apply Now (opens in a new tab), How Does It Work? (opens in a new tab) and DPA Professional Bulletin, August 12, 2026 (opens in a new tab)
• City of Grand Rapids, Homebuyer Assistance Fund (opens in a new tab), HAF program summary (PDF) (opens in a new tab) and Community Development Program Income Limits (opens in a new tab) (effective June 1, 2026)
• City of Lansing, Down Payment Assistance (opens in a new tab) and Program Income Limits (opens in a new tab) (FY2026)
• Washtenaw County, Homebuyer Assistance (opens in a new tab)
• IRS, Instructions for Form 8828, Recapture of Federal Mortgage Subsidy (opens in a new tab) (Rev. November 2024) and Form 8828 (opens in a new tab)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development, Single Family Housing Guaranteed Loan Program (opens in a new tab)
• U.S. Census Bureau, QuickFacts: Michigan and selected counties (opens in a new tab) and Oakland, Macomb, Kalamazoo and Ottawa counties (opens in a new tab) (median value of owner-occupied homes, 2020-2024; population estimates July 1, 2025)
• FTC, Government Grant Scams (opens in a new tab)