Michigan First-Time Home Buyer Programs of 2024

If you need help buying your first home in the Wolverine State, the Michigan State Housing Development Authority may be able to help with a loan program, plus down payment assistance.

If you haven't owned a home in the past three years, you can qualify as a first-time home buyer. That means that if you owned a home but left it more than three years ago, you may be able to get a fresh start under these programs.

MSHDA highlights and eligibility requirements

The Michigan State Housing Development Authority offers a mortgage program for both first-time home buyers and repeat buyers. The mortgage features fixed interest rates and a low down payment requirement, and it can be combined with down payment assistance and the authority’s mortgage tax credit program.

» MORE: Tips for first-time home buyers

Highlights

• Alternative credit review is available for some borrowers who have no credit score.

• The minimum down payment for a conventional loan is 3%, and down payment assistance is available.

• Available to first-timers as well as repeat home buyers in certain economically disadvantaged target areas.

Eligibility

• Available for credit scores as low as 640.

• The home has to be your primary residence.

• There are limits on sales price, income and overall debt-to-income ratio.

• You must attend a home buyer education course to receive down payment assistance.

• You have to contribute at least 1% of the loan amount, even with down payment assistance.

MSHDA first-time home buyer loan programs

MI Home Loan

Best for:

Fixed-rate loans with cash assistance

What you need to know:

The MI Home Loan with down payment assistance up to $10,000 is for first-time home buyers (and repeat buyers in targeted areas) with low to moderate incomes. The minimum credit score is 640. All loans under the program are 30-year fixed-rate mortgages. Every adult who intends to live in the home must apply and meet loan qualifications. The loan can be used to buy a manufactured home if the structure meets MSHDA guidelines. It also can be used to buy a single-family house or a condominium.

Mortgage Credit Certificate

Best for:

A break on your taxes

What you need to know:

The Mortgage Credit Certificate program issues a federal tax credit to first-time home buyers throughout Michigan, and to repeat home buyers in targeted areas. Mortgage borrowers can credit 20% of the annual mortgage interest paid to offset their tax bills. Income limits vary, depending on household size and property location, and the maximum sales price is $224,500.

Start out on the Michigan State Housing Development Authority's "Homeownership" page, which has links to information about the state's loan programs, including mortgage credit certificates and home buyer education classes.

If you need down payment assistance, take a look at MSHDA's down payment assistance page.

The authority's website maintains a county-by-county list of loan officers who do MI Home Loans.

» MORE: The best homeowners insurance in Michigan

First-time home buyer programs near Michigan

Illinois first-time home buyer programs Indiana first-time home buyer programs Ohio first-time home buyer programs Pennsylvania first-time home buyer programs Wisconsin first-time home buyer programs