Funds Still Available for MSHDA's $25,000 DPA Program

For many first-time homebuyers, saving for a down payment is one of the biggest challenges to homeownership. The Michigan State Housing Development Authority (MSHDA) is making it easier with the First-Generation Down Payment Assistance Program, which provides up to $25,000 to qualified buyers.

With only $8 million in available funding, this is a limited opportunity (some of those funds have already been used!). Once the funds are gone, they’re gone. If you or someone you know is looking to buy a home, now is the time to act.

What is the First-Generation Down Payment Assistance Program?

This program is designed to help first-generation homebuyers — those whose parents have not owned a home in the past three years — get the financial support they need to purchase a home. The $25,000 assistance can be used for a down payment, closing costs, prepaid expenses, and escrows.

For many buyers, this program eliminates the biggest barrier to homeownership, making it possible to secure a home with significantly less out-of-pocket expense.

Who Qualifies?

To be eligible for this down payment assistance, buyers must:

Purchase the home as their primary residence
Not have owned a home in the last three years
Have parents who have not owned a home in the last three years

Additionally, at least one of the following must apply:

Parents have not owned a home in the last three years
Buyer has aged out of foster care
Buyer has been emancipated

How to Get Started

Since funding is limited, it’s important to act quickly. Here’s what buyers need to do:

Get pre-approved – A Michigan Mortgage Loan Officer can help determine eligibility, assess financial readiness, and guide buyers through the process.
Complete the required Homebuyer Education Course – All buyers using MSHDA down payment assistance must take this course to qualify.
Find the right home – Once pre-approved, buyers can begin their home search with the confidence that they have financial support in place.

Why This Program Matters

Homeownership is a major milestone, but for many first-generation buyers, it has felt out of reach. This program helps level the playing field, providing financial support to those who may not have had generational assistance in buying a home.

By reducing the upfront costs, MSHDA is making homeownership more accessible for individuals and families who are ready to make the move.

For more details, give us a call and take the next step toward owning your first home!