New down payment assistance program announced for Michigan home buyers

Step Forward Michigan has $15,000 to help you buy a home.

The Michigan State Housing Development Authority (MSHDA) announced that beginning October, 2018. $20 million will be allocated for a new program that provides a $15,000 forgive-able loan to cover down payment, closing costs, and principle reduction for home buyers. The new down payment assistance (DPA) program is called Step Forward Michigan DPA. Home buyers that take advantage of this zero percent interest second mortgage will have the loan forgiven at a rate of 20 percent each year for five years, at which point the lien will be discharged.

Since 2010, the federally-funded Step Forward Michigan program has provided financial assistance to struggling homeowners that are delinquent on their existing mortgage or property taxes. That program continues to help homeowners throughout the state and now MSHDA is expanding the program to bolster homeownership in specific Michigan communities.

Home buyers must meet eligibility requirements that includes limits on household income and a minimum credit score. The guidelines follow the same requirements as MSHDA’s other DPA program MI Home Loan. The home being purchased must be within the 61 zip codes listed:

  • Bay: 48706, 48708
  • Clinton: 48906
  • Eaton: 48911
  • Genesee: 48457, 48458, 48503, 48504, 48506, 48507, 48509, 48519, 48529, 48532
  • Ingham: 48906, 48910, 48911, 48912, 48915
  • Jackson: 49202, 49203, 49254
  • Macomb: 48015, 48021, 48048, 48066, 48089, 48091
  • Monroe: 48160
  • Muskegon: 49442
  • Oakland: 48030, 48033, 48075, 48340, 48341, 48342
  • Saginaw: 48602, 48604
  • Washtenaw: 48160, 48198
  • Wayne: 48111, 48122, 48125, 48135, 48141, 48146, 48174, 48180, 48184, 48192, 48195, 48205, 48214, 48215, 48219, 48221, 48223, 48224, 48225, 48227, 48228, 48235, 48239, 48240

If you don’t see the county or zip code you were hoping to purchase in, MSHDA also continues to offer its other down payment assistance program MI First Home which is available in all zip codes across the state with up to $7,500 in down payment and closing cost assistance.

MSU Extension provides homeownership education classes and counseling which is often a prerequisite for down payment assistance programs such as MSHDA’s MI Home Loan and Step Forward Michigan. Visit the events page to search upcoming classes and online learning opportunities.

See How to apply for Step Forward Michigan for additional information.

For additional resources visit Michigan State University ExtensionMichigan State University Extension offers financial literacy and homeownership workshops throughout the year to help you become financially healthy. For more information of classes in your area, please visit either the MSU Extension events page or MI Money Health website. Additionally, you can take the Financial Health Survey at MI Money Health to access if you’re financially healthy and discover more ways you can improve your financial health.


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