Offered by the Michigan State Housing Development Authority (MSHDA), the First Home Down Payment Assistance Program is a second mortgage that must be used with the First Home or Next Home First Mortgage offered by MSHDA.
Borrowers interested in this program must finish an approved homebuying education course.
Up to $7,500 is offered in the form of a non-amortizing loan with 0% interest and deferred payment. The loan amount becomes due and must be repaid when the property is sold, transferred, refinanced, or if the first mortgage is paid off.
In most cases, to utilize this program you must be a first-time homebuyer. However, repeat homebuyers are allowed if they are purchasing a property in the following target areas:
Alcona, Alger, Allegan, Alpena, Antrim, Arenac, Baraga, Barry, Benzie, Berrien, Branch, Cass, Charlevoix, Cheboygan, Chippewa, Clare, Delta, Emmet, Gogebic, Traverse, Gratiot, Houghton, Ingham, Iosco, Ionia, Iron, Kalamazoo, Keweenaw, Lapeer, Leelanau, Lenawee, Luce, Manistee, Marquette, Mason, Mecosta, Menominee, Missaukee, Montcalm, Montmorency, Newaygo, Oceana, Ogemaw, Ontonagon, Osceola, Otsego, Presque Isle, Roscommon, St. Clair, St. Joseph, Sanilac, Schoolcraft, Tuscola, Van Buren, Washtenaw, or Wexford.
In order to be eligible, applicants must have a credit score no lower than 640 (or 660 if the property being purchased is multi-section, manufactured house with a permanent foundation, built on June 14, 1976 or later, and is taxed as real estate). All individuals 18 years of age or older who will be occupying the property must co-apply and meet the minimum credit score, unless the individual is the applicant’s child and is also a full-time student.
Other programs in Michigan: