Start with the payment and cash plan
A first-time-buyer program should solve a real constraint without creating a worse rate, repayment obligation or future limitation. Compare the full payment, cash to close, reserves after closing, assistance terms and cost over the years you expect to keep the loan.
MSHDA MI Home Loan and MI 10K DPA
MSHDA’s official homeownership page currently lists the MI Home Loan and statewide MI 10K Down Payment Assistance loan of up to $10,000. Housing education is required for the DPA. Income, sales-price, credit, property, occupancy and lender requirements apply; verify the current limits for the property and household before an offer.
How assistance is repaid
Down-payment assistance is generally a separate obligation rather than free cash. Review whether it is deferred, due on sale, refinance, transfer or payoff, and whether any forgiveness applies. Read the note and program disclosure before choosing assistance over a non-assistance loan.
Mortgage Credit Certificate
MSHDA identifies a Mortgage Credit Certificate that may provide an annual federal tax credit for eligible borrowers. Availability, income and purchase-price limits, fees and interaction with the first mortgage must be confirmed with a participating lender and tax advisor.
Conventional 3%, FHA, VA and USDA
A conventional first-time-buyer option may begin near 3% down for eligible borrowers. FHA can offer flexible underwriting with mortgage insurance. VA and USDA may allow zero-down financing for eligible borrowers and properties. Compare insurance, funding fees, geography, appraisal rules and total cost.
Education, credit and property eligibility
Complete required homebuyer education early. Assistance programs may apply household-income, liquid-asset, credit-score, property-type, occupancy and sales-price rules. Condos and multi-unit properties deserve early review.
Common Michigan mistakes
Do not rely on the seller’s capped property-tax bill, spend every dollar at closing, assume assistance is a grant, or choose the largest approval instead of a durable budget. Verify tax reassessment, homeowners insurance and repair reserves.
Frequently asked questions
How much MSHDA down-payment assistance is currently listed?+
MSHDA’s official homeownership page lists the MI 10K DPA loan for up to $10,000 statewide. Current eligibility and funding must be confirmed before relying on it.
Is MSHDA assistance free money?+
No. It is a loan with repayment terms. Review when it becomes due and how it affects a future sale or refinance.
Do I have to be a first-time buyer for every program?+
No. Definitions and requirements vary, and some programs permit repeat buyers in specified circumstances or areas.
Which option has the lowest cost?+
It depends on rate, mortgage insurance, assistance repayment, fees, cash retained and how long you keep the loan. Compare multiple written scenarios.