Understanding MSHDA Down Payment Assistance

One of the biggest hurdles for first-time home buyers is saving for a down payment. The Michigan State Housing Development Authority (MSHDA) offers several programs designed to make homeownership more accessible. These programs provide down payment assistance of up to $10,000 or more, depending on the loan type and property location.

How MSHDA Programs Work

MSHDA down payment assistance comes in the form of a zero-interest, non-amortizing loan that is not due until you sell, refinance, or pay off your first mortgage. This means your monthly payment is based only on your primary mortgage, making homeownership significantly more affordable. The program can be paired with FHA, VA, USDA, or conventional loans.

Eligibility Requirements

• Must be a first-time home buyer (or have not owned a home in the past 3 years)
• Meet income limits based on your county and household size
• Complete a homebuyer education course
• Purchase a home within MSHDA's price limits
• Use a MSHDA-approved lender

REALTEAM agents are experienced in working with MSHDA-funded buyers and can guide you through the entire process. We also partner with MSHDA-approved lenders who specialize in these programs to ensure a smooth transaction from start to finish.