MSHDA $15,000 Down Payment Assistance Program for First-Time Home Buyers

Note: Funds for this program have expired. Ask us about MSHDA’s $10,000 Down Payment Assistance program!

The Michigan State Housing Development Authority (MSHDA) introduced a new down payment assistance program for eligible, first time home buyers purchasing in the 49442 zip code.

The “Step Forward Down Payment Assistance” program is a $15,000 forgivable loan and is to be used in conjunction with the MSHDA MI Home Loan first mortgage for first time buyers.

We’re happy to introduce the program because, unlike the current MSHDA down payment assistance program, it’s a forgivable loan. In five years, if the borrower still occupies the home as their primary residence, the loan is completely forgiven. The loan is forgiven 20 percent each year until the five-year mark is reached.

Additionally, it’s a complete $15,000 and can be used towards the down payment, closing costs and escrows. If there is money left over, we will use it to reduce the principal loan balance on the new mortgage.

The new program can be used with FHA, Rural Development, VA and Conventional MSHDA MI Home Loans. According to MSHDA, the interest rate is typically lower than the other down payment assistance programs offered.

MSHDA allocated $20 million for the Step Forward Down Payment Assistance program and funds will be distributed on a first come, first served basis. The program is available in 61 eligible zip codes in 10 Michigan counties. The sales price limit follows MSHDA MI Home Loan guidelines and is $224,500 for the entire state. Contact us for a complete list of eligible zip codes.

The Step Forward Down Payment Assistance program will be available for new purchases on or after October 8, 2018. Eligibility is based on credit score, total household income, appraised value of the home available for purchase and more according to MSHDA guidelines.

If you have questions, or to see if you qualify for the Step Forward Down Payment Assistance program, give us a call at 231-799-2606. We’re here to help!

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53 replies
    • Courtney Coon
      Courtney Coon says:

      Hi Raymond! This program has expired, but there’s a similar program that offers $7,500 in assistance if you’re interested in learning more.

      Reply
    • Courtney Coon
      Courtney Coon says:

      Hi Maria! Great question. At this time, there is no plan to replenish this program. MSHDA does, however, offer a different down payment assistance program that’s still available to eligible buyers.

      Reply
  1. Keith moore
    Keith moore says:

    I would like to know as much information about grants and loans as I can for a first time home buyer. I haven’t bought yet just looking into what help I could get. Any info would be appreciated

    Reply
  2. Wendy Rein
    Wendy Rein says:

    Please email additional information on the forgivable down payment loan. We are actively looking for a home in northern Michigan. Thank you

    Reply
  3. Denise Ford
    Denise Ford says:

    I am curious I’m on a fixed income I owned a home before I’d like to get a manufactured home is there anyway that I’d be,able to get this

    Reply
  4. Tammy
    Tammy says:

    my credit isn’t good but isn’t bad looking to buy my first home on ssd but not sure how to apply for a loan through the state of Michigan how do you apply and where do you go get your loan fromhow do you apply and where do you go get your loan from

    Reply
  5. Shawnee
    Shawnee says:

    Hello, is this program expired or did the funds get replenished. My lender informed me that this program is still active but wanted to look more into it.

    Reply
    • Sandra Brace
      Sandra Brace says:

      Hi Shawnee! This program has expired, but there’s a similar program that offers $7,500 in assistance if you’re interested in learning more.

      Reply
  6. Patricia Henderson
    Patricia Henderson says:

    I have completed my Homebuyers Program in December of 2019. I am disable also I have a section 8 voucher. My credit score is around 647 but my outstanding debts are around 7700. How can I become a first time Homebuyer at 62 in mi with MSHDA. Can I do lease to purchase with a HELOC using the home as collateral. Who are the lenders that know about creative finance.

    Reply
  7. James Finn
    James Finn says:

    Hello,

    I took out a mortgage last year under the 15,000 forgivable down payment program. Am I able to refinance this loan or is that against the terms of the program?

    Best,
    James

    Reply
    • Courtney Coon
      Courtney Coon says:

      Hi Anastasia! This program is no longer available, but I will have one of our Loan Officers reach out about a similar program. Stay tuned!

      Reply
  8. Sandra
    Sandra says:

    Hi I’m a veteran looking to buy a home and am interested in downpayment assistance. Are any grants or forgivable loans available, and can I have information on those please?

    Reply

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