Down Payment And Closing Cost Grant In Michigan

The Michigan State Housing Development Authority provides a Down Payment Assistance (DPA) program to help you purchase your home. It is a second mortgage that has to be used alopng with MSHDA’s MI First Home or MSHDA’s MI Next Home first mortgage. This program is for low- to moderate-income first time homebuyers, depending on the home location and your family size.

Michigan First Time Home Buyer GrantThe maximum amount of this loan is $7,500. This is a Zero-interest, non-amortizing loan, which means that there are no monthly payments. However, the loan is due upon the sale of your home, transfer of the property, or if the first mortgage is refinanced or paid in full. So the net effect is that the principle balance is not a grant, only the interest is. However, over the course of 360 monthly payments (should you remain in your home that long without selling), interest can amount to 2 or 3 times the principle balance. The net effect is that program amounts to a considerable Michigan first time home buyer grant.

The MSHDA is gifting you the interest, and loaning you the $7,500 for as long as you need it without having ANY monthly payments. This can be a tremendous benefit for those who are struggling to come up with the down payment.

To get all the details of this program, visit the MSHDA webpage here, or contact them directly:

Lansing Office

735 E. Michigan Ave
P.O. Box 30044
Lansing, MI 48909

Telephone: 517-373-8370
Toll Free: 1-855-MI-MSHDA
(1-855-646-7432Ā FREE)
Fax: 517-335-4797

Michigan First Time Home Buyer Grants