MSHDA’s new initiative provides financial aid to help first-time, first-generation homebuyers achieve homeownership in Michigan.

Michigan’s First-Generation Down Payment Assistance Program Unveiled

LANSING, Mich. — The Michigan State Housing Development Authority (MSHDA) has announced the launch of the First-Generation Down Payment Assistance (DPA) program, offering $25,000 in financial aid to eligible homebuyers.

The initiative, backed by an $8 million state appropriation, aims to remove financial barriers preventing first-generation buyers from securing homeownership. The funding, provided as a deferred loan, can cover upfront costs such as down payments, closing costs, and prepaid expenses.

“Homeownership is an important pathway to economic vitality and mobility for our state and its residents, but too many first-time buyers face financial barriers that put it out of reach,” said Amy Hovey, CEO and Executive Director of MSHDA. “With rents soaring, this program offers families a foot in the door and much-needed stability by helping them secure a home with a fixed monthly cost.”

Who Qualifies for the First-Generation DPA Program?

The program is designed for individuals and families who meet the following criteria:

Applicants must be first-generation homebuyers with no history of homeownership in the past three years.
Household income must fall within MSHDA-set limits.
A minimum credit score of 640 is required.
The target property’s sale price cannot exceed $224,500.
Borrowers must use the home as their primary residence.
Applicants must combine the First-Generation DPA with a MI Home Loan (conventional, FHA, or USDA).
Borrowers must complete an in-person homebuyer education course from a HUD-approved housing counseling agency.

The First-Generation DPA program is available in all 83 Michigan counties, aiming to expand homeownership access and promote financial stability for Michiganders.

State Leaders Applaud Affordable Housing Investment

Lt. Governor Garlin Gilchrist II emphasized the significance of the initiative, highlighting its potential to provide lasting financial benefits for working families.

“Governor Whitmer and I are standing tall so more working families can find an affordable place to live in vibrant communities across Michigan,” Gilchrist said. “Today’s announcement will help more families cover upfront homebuying costs, keeping money in their pocket, where it belongs.”

The program builds upon MSHDA’s existing homeownership assistance programs, such as MI Home Loan Mortgage, MI 10K DPA, and the Housing Education Program. An assessment of MSHDA’s MI 10K DPA program demonstrated the need for expanded financial support for homebuyers who lack access to generational wealth.

Bridging the Homeownership Gap in Michigan

This initiative is part of Michigan’s broader effort to address housing affordability and support economic growth by increasing homeownership rates. First-time buyers, particularly those without inherited financial resources, often face barriers to homeownership due to high upfront costs.

By investing in programs like First-Generation DPA, MSHDA is working to bridge the homeownership gap and foster long-term financial stability for Michigan families.

Learn More About First-Generation DPA

For full program details and eligibility requirements, visit michigan.gov/FirstGenDPA.

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