5 Down Payment Assistance Programs in Michigan You Should Know About
So, you’ve found the perfect house, you’re dreaming of how to decorate it, but there’s just one tiny little thing standing in your way—your down payment. Don’t panic! Michigan has some awesome down payment assistance programs that could be the key to unlocking that front door. Let me introduce you to the fab five (seriously, they’re like your best friends in the homebuying world)!
1. Federal Home Loan Bank’s Homebuyer Opportunity Program (HOP)
Let’s kick things off with the HOP program. This program offers up to $20,000 for first-time homebuyers! It’s available through participating lenders and can be a game-changer when you’re trying to make that down payment. The best part? It’s not just a loan—it’s forgivable after five years of living in your new place.
2. HomeBoost Program
The HomeBoost program helps with up to $25,000 for minority or first generation home buyers purchasing their first home working hand in hand with local lending partners. This program can be paired with MSHDA’s down payment program giving you a serious leg up in the competitive market.
3. MSHDA’s $10,000 Down Payment Assistance Program
Meet Michigan’s heavy hitter—the Michigan State Housing Development Authority (MSHDA) and its down payment assistance program. This program offers $10,000 to help first-time buyers with down payment, or repeat buyers purchasing in some targeted areas of the state. The loan is zero-interest (yes, you heard me—zero), and repayment only kicks in when you sell or refinance. It’s like borrowing from your super chill friend who doesn’t even want the money back until you’re ready.
4. Individual Development Account (IDA) Program through Mercantile Bank
This one’s a bit like a savings match on steroids. The IDA program through Mercantile Bank is all about empowering you to save for your home by matching every dollar you put away. It’s like the bank saying, “Hey, we believe in you!” And who doesn’t want that? For eligible buyers, it’s a 3-to-1 match, meaning if you save $1, they’ll add $3. Save $1,000? Boom! You’ve got $4,000 to put towards your down payment. It’s like turning your savings into a mini jackpot! This program can be paired with any of the other ones on this list.
5. City-Specific Down Payment Assistance Programs
Now, here’s where it gets a little tricky (but don’t worry, we’ve got your back). Many cities in Michigan, like Detroit, Grand Rapids, and Lansing, offer their own down payment assistance programs. These can be incredible, but there’s usually a catch—these funds often come from the same pool as MSHDA’s programs. So, unfortunately, you can’t double dip and use both city and MSHDA funds. It’s like trying to use the same coupon twice—doesn’t work. That said, city programs can still provide a nice chunk of change to help you move into that new home.