MSHDA expands $10K down payment assistance program to homebuyers throughout the state

What’s happening: The Michigan State Housing Development Authority (MSHDA) has expanded a popular down payment assistance program for the state’s low- and middle-income homebuyers, extending the program’s reach from select communities in 236 zip codes to cover residents statewide.

Background: The $10,000 down payment assistance (MI 10K DPA) program from MSHDA was first launched in 2021 for low- and middle-income homebuyers in targeted areas, including the state’s primary population centers and several rural communities; those not located in the initial grouping of 236 zip codes would still have the $7,500 DPA program available to them. The MI 10K DPA program has proven so successful, officials from MSHDA attest, that it has now phased out the $7,500 DPA and made the $10,000 DPA available to residents throughout the entirety of the state.

How it works: The MI 10K DPA program helps Michigan homebuyers overcome what’s widely considered to be the biggest barrier to homeownership: the down payment. The program offers up to $10,000 as “a 0% non-amortizing loan due upon sale or transfer of the property, meaning borrowers do not have monthly payments on the DPA loan,” as it’s stated on the MSHDA website.

Household income limits vary by family size and property location, more information of which is available online, although universally, borrowers cannot have more than $20,000 in liquid cash assets, must have a minimum credit score of 640 (or 660 for multiple-section manufactured homes), and the home’s sales price cannot exceed $224,500.

Visit MSHDA online for a complete breakdown of eligibility requirements for the MI 10K DPA program.

Why it’s important: “Michigan is in a housing crisis, and businesses of all sizes and geographic areas have made it clear that housing costs and the lack of housing availability in Michigan is making it hard to attract, recruit and retain talent,” says Amy Hovey, executive director at MSHDA. 

MSHDA is hosting a panel discussion at the Detroit Regional Chamber’s Mackinac Policy Conference on Tuesday, May 30. Hovey will moderate the discussion, How Employers Can Help Solve Michigan’s Housing Affordability Crisis, with Michigan business leaders.

“This session will shine light on how businesses can be agents of change in the housing landscape, leading to positive outcomes for their companies, employees, and communities.”

Visit MSHDA online to learn more about the MI 10K DPA program and other opportunities for Michigan homebuyers.

Got a development news story to share? Email MJ Galbraith here or send him a tweet @mikegalbraith.
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