Michigan Down Payment Assistance: 2026 Homebuyer Guide

What is the MI 10K DPA?

The MI 10K DPA is a program from the Michigan State Housing Development Authority (MSHDA), the state's housing finance agency. Here's how it works in plain terms:

• It's up to $10,000. That money can go toward your down payment, closing costs, and prepaid expenses like the first round of taxes and insurance.

• It's a loan, not a grant. This is the part I always make sure people hear. It's interest-free and you make no monthly payments on it, but it does get repaid.

• Repayment is deferred. It comes due when the first mortgage is paid off, when you sell or refinance, or when the home is no longer your primary residence (Top Agent Realty).

• It's available statewide. It used to be limited to certain areas; it isn't anymore.

• It's paired with a specific first mortgage. You use it alongside MSHDA's MI Home Loan, and you apply through an MSHDA-approved lender.

That last point matters. You don't apply to MSHDA directly. You work with a participating lender, and they walk you through both pieces together — the first mortgage and the assistance in a single application (Top Agent Realty).

Who is it for?

The MI Home Loan is available to first-time buyers statewide. MSHDA defines a first-time buyer as someone who hasn't owned a home in the previous three years, so if you owned a home a while back, you may still count (Top Agent Realty). Repeat buyers can also use the program if they're buying in one of MSHDA's designated targeted areas.

Beyond that, a few things have to line up for a loan reserved after June 1, 2026:

• Income limits. Household income must fall within MSHDA's limits, which vary by county, household size, and whether the community is a targeted area.

• Sales price limit. The home's price must fall under MSHDA's statewide limit of $566,355 for 2026.

• Credit score. MSHDA's minimum is 640 for most loan types.

• Homebuyer education. Every buyer on the loan completes a housing education course and gets a certificate.

• Primary residence. This is for the home you'll actually live in.

Those numbers change from time to time, usually around midyear. I'll always check the current figures with you rather than guess.

What are the 2026 income and price limits?

Eligibility comes down to three numbers: your household income, your county, and the home's price. The income caps vary by county and household size, and targeted communities get higher limits — plus repeat buyers qualify there. Here's the picture for Metro Detroit's three biggest counties, effective June 1, 2026 (Top Agent Realty):

Two details worth flagging. First, in targeted communities the income limits run about 20% higher, and first-time buyer status isn't required. Second, the same $566,355 price cap applies everywhere, so the program isn't just for entry-level homes — it covers the majority of Metro Detroit listings (Top Agent Realty). The exact limits differ in every county, which is exactly why checking your own county's figures matters before you build a plan.

Are there local down payment programs as well?

Yes — and for many buyers, local assistance is what closes the gap MSHDA's $10,000 doesn't reach. Because funding is finite and first-come, first-served, these programs open and close, which is why asking about them early matters.

Detroit runs its own Down Payment Assistance program that has reopened for a third round, providing up to $25,000 for eligible residents buying a home — funded in part by HUD's Community Development Block Grant and Disaster Recovery dollars (Detroit Free Press). Applications are reviewed first-come, first-served.

Grand Rapids offers the Homebuyer Assistance Fund, providing up to $7,500 toward a down payment, closing costs, and prepaid expenses for low- and moderate-income buyers (The Mortgage Reports).

Oakland County runs a $5,000 grant for first-time buyers purchasing in the county, administered through the county treasurer's office and Independent Bank (Top Agent Realty).

One caution about the ecosystem: MSHDA's First Generation DPA, a pilot that once offered up to $25,000 to buyers whose parents never owned a home, is now closed — all funds exhausted and no waitlist (Top Agent Realty). The MI 10K DPA remains the active statewide option. This is exactly why the details matter: the program that was on a flyer last year may not be taking applications this year, and the one nobody mentions might be.