Michigan programs
MSHDA
The Michigan State Housing Development Authority, which offers the MI Home Loan and up to $10,000 in down payment assistance (MI 10K DPA) to eligible buyers statewide.
What does MSHDA mean?
MSHDA is Michigan's housing finance agency, and its programs are the state's most valuable tool for first-time and moderate-income buyers. It doesn't lend directly — it works through approved lenders, adding benefits on top of a standard FHA, VA, USDA, or conventional loan.
The headline benefit is the MI 10K DPA: up to $10,000 toward down payment and closing costs as a 0%-interest loan, available in all 83 counties.
A Michigan example
A first-time buyer purchasing a $200,000 home with an FHA loan needs about $7,000 for the 3.5% down payment, plus closing costs. The MI 10K DPA can cover most or all of that upfront cash as a 0%-interest second loan.
That can shrink the money needed at the table from roughly $13,000 to just a few thousand dollars.
Common questions
What does MSHDA offer Michigan buyers?
The MI Home Loan plus the MI 10K DPA — up to $10,000 toward down payment and closing costs as a 0%-interest loan, available in all 83 counties. It layers on top of a standard FHA, VA, USDA, or conventional loan.
What are the MSHDA requirements?
A 640 credit minimum, county-based income limits, purchase-price caps, and a MSHDA-approved lender. Not every lender originates MSHDA loans, so confirm before you apply that your lender participates in the program.
Is the MI 10K DPA a grant?
No — it's a 0%-interest loan with no monthly payment, repaid when you sell or refinance the home. While you own and live in the property, though, it functions much like a grant, since nothing is due month to month.
Related terms