Overview
Michigan's housing market offers opportunities for first-time buyers, with a median home price of approximately $235,000. The Michigan State Housing Development Authority (MSHDA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The MI Home Loan Program is a michigan state housing development authority's key offering for first-time buyers, providing below-market rate 30-year fixed mortgage with up to $10,000 in dpa. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
MI Home Loan Program
Below-market rate mortgage with DPAMI DPA Loan
Down payment assistanceFederal Programs Available in Michigan
These nationwide programs can be combined with Michigan state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Michigan
The MI DPA Loan extends additional support through up to $7,500 as a 0% interest, non-amortizing loan. Michigan has a flat income tax of 4.05%. Property taxes average about 1.44%. MSHDA offers generous DPA up to $10,000 for qualifying buyers in one of the Midwest's most affordable housing markets.
Federal programs complement state offerings in Michigan. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Selfridge Air National Guard Base. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Michigan.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.