$10,000 goes a long way toward your down payment.
The Michigan State Housing Development Authority offers up to $10k in down payment assistance,1 at 0% interest!
MSHDA Loan: Features & Benefits
It’s technically a “loan,” but it’s easier to think of a MSHDA loan as a down payment assistance program, as it’s an interest-free helping hand that helps you get your foot in the door of your dream home.
No asset limit
Though MSHDA loans are income limited, your current assets and cash reserves aren’t counted.
Buyer eligibility
MSHDA loans are available for first-time buyers statewide (Michigan only) and for select repeat buyers.
No monthly payments
A MSHDA loan charges 0% interest.
Flexible use
A MSHDA loan can be used with Conventional, FHA, Rural Development, and VA loan programs.
Sales price limit
MSHDA loans can be used when purchasing a home in Michigan up to $544,233.
Up to $10,000
MSHDA loans can provide up to $10,0001 to use toward your down payment and closing costs.
Requirements for a MSHDA $10,000 Down Payment Assistance Loan
A little help requires a little planning. Here are some things to keep in mind before applying for a MSHDA loan.
Residence status
MSHDA loans are only available for primary residences.
Borrower contribution
A homebuyer must contribute a minimum of 1% of the sales price, though this amount can be gifted.
Homebuyer education class
First-time homebuyers applying for a MSHDA loan must complete a homebuyer education class.2
MSHDA Loan FAQs
MSHDA loans are offered by the Michigan State Housing Development Authority to help make homeownership more affordable and accessible for homebuyers — especially first-time homebuyers — by offering up to $10,0001 in down payment and closing cost assistance at a 0% interest rate.
To qualify for a MSHDA loan, you usually need to:
- Not exceed income limits. These limits, determined by MSHDA, are based on your county, township, and household size.
- Have a minimum credit score of 640.
- Purchase a home whose price does not exceed $544,233.
- Occupy the home as your primary residence.
In addition to credit and income requirements, MSHDA loan applicants must:
Complete a homebuyer education class2
Work with an approved MSHDA lender (like us!)
Contribute 1% of the home’s total sales price
MSHDA loans are designed with first-time homebuyers in mind, but repeat buyers may still qualify if they are purchasing homes in specific areas or pairing their MSHDA loan with certain loan programs. Consult your loan officer to confirm your eligibility.
Yes, since a MSHDA loan is technically a “second mortgage,” it can be paired with Conventional, FHA, Rural Development, and VA loan programs. You can even qualify for both a MSHDA loan and LMCU’s HomeAssist program, to receive up to $20,000 in total down payment assistance!
Yes, down payment received from MSHDA is still a loan, and is technically considered a second mortgage that exists alongside your first mortgage. However, a MSHDA loan typically accrues 0% of interest and doesn’t require monthly payments.
Repayment of a MSHDA loan is deferred until you:
- Sell your home
- Refinance your mortgage
- Pay off your first mortgage
- Change your homes occupancy
Buying a home? Start here.
Connect with one of our local mortgage experts. They’re ready to answer any homebuying questions you may have with a smile and an extra mile.
The home of all your homeownership needs.
Disclosures
Terms and conditions apply. Find out more at www.michigan.gov/MSHDA.
A Homebuyer Education certificate of completion is required for all homebuyers when using the MSHDA Down Payment Assistance prior to loan closing.
