MSHDA program
MI 10K DPA: $10,000 toward your down payment
In short
The MI 10K DPA is Michigan's statewide down payment assistance program, offering up to $10,000 toward your down payment, closing costs, and prepaid escrows. It's structured as a 0%-interest loan with no monthly payment, repaid only when you sell, refinance, or pay off the first mortgage — so while you own the home, it behaves like a grant. It's available in all 83 counties and requires a MSHDA MI Home Loan as the first mortgage.
How the $10,000 works
The MI 10K DPA is deferred, not forgiven: it's a second loan of up to $10,000 that sits quietly behind your mortgage, charging no interest and requiring no monthly payment. You repay the balance only when the home sells, you refinance, or the first mortgage is paid off. Because nothing accrues, it functions like a grant for as long as you live in the home — the money is repaid from your equity down the road, not your paycheck.
It covers the cash-heavy parts of buying: the down payment, closing costs, and prepaid escrow items. Paired with an FHA loan at 3.5% down, it can bring the out-of-pocket cost of a $200,000 home from roughly $13,000 down to a few thousand dollars.
Who can get it
The MI 10K DPA requires taking a MSHDA MI Home Loan, which means meeting its rules: a 640 credit score, household income under your county limit, and a purchase price under the county cap. You'll also complete a homebuyer education course. Because the DPA rides on the MI Home Loan, you need a MSHDA-approved lender — not every Michigan lender participates.
How to claim it
The path is straightforward but sequence matters: get your credit to 640, confirm you're under the county income and price limits, take the homebuyer education class early, and choose a MSHDA-approved lender who originates MI Home Loans with the 10K DPA. The assistance is arranged as part of your loan, so it's handled at closing — you don't apply for it separately. Remember it covers cash-to-close, not the monthly payment, which is still sized on your income.
Frequently asked questions
Is the MI 10K DPA a grant or a loan?
A 0%-interest loan with no monthly payment, repaid when you sell, refinance, or pay off the first mortgage. Because no interest accrues, it works like a grant while you own the home — but it is eventually repaid from your equity.
Can I use the MI 10K DPA anywhere in Michigan?
Yes — it's available in all 83 counties. It requires a MSHDA MI Home Loan as the first mortgage, and you must meet the credit, income, and purchase-price rules that apply to that loan.
What can the $10,000 be used for?
Down payment, closing costs, and prepaid escrow items — the cash you'd otherwise bring to closing. It doesn't reduce your monthly payment, which is still based on the loan amount and your income.