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MSHDA Program Up to $10,000 • Zero Interest • No Monthly Payments

Michigan Down Payment
Assistance -- MI 10K DPA.

Down payment is the single biggest barrier keeping Michigan renters from becoming homeowners. The MSHDA MI 10K DPA program exists to close that gap -- up to $10,000 toward your down payment and closing costs, zero interest, no monthly payments, available in hundreds of Michigan zip codes including many in Northern Michigan.

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Quick Answer

The MSHDA MI 10K DPA is Michigan's primary down payment assistance program. It provides up to $10,000 as a zero-interest second mortgage with no monthly payments -- repaid only when you sell, refinance, or pay off the home. Available in 236 qualifying zip codes statewide. Requires a 640+ credit score, MSHDA income limits, completion of a homebuyer education class, and must be paired with an MSHDA MI Home Loan first mortgage. Kirby and Angie are approved MSHDA lenders.

$10,000
Max Assistance
0%
Interest Rate
$0
Monthly Payment
640+
Min Credit Score
236
Qualifying Zip Codes

How the MI 10K DPA Actually Works

The MI 10K DPA is a second mortgage -- not a grant. That distinction matters because some buyers come in expecting free money with no strings attached. The reality is more nuanced and still excellent: you borrow up to $10,000, pay zero interest on it, make zero monthly payments, and repay the full amount only when you eventually sell, refinance, or pay off your home. No interest. No monthly payment. Just a deferred obligation that sits behind your first mortgage until you are done with the house.

For most buyers, this means the down payment hurdle either disappears or shrinks to something manageable. On an FHA loan with 3.5% down and a $200,000 purchase price, your down payment requirement is $7,000. The MI 10K DPA can cover that entirely and put the remaining $3,000 toward closing costs. You show up to the closing table with significantly less cash out of pocket.

Kirby and Angie are approved MSHDA lenders. This is a program we work with regularly -- we know the income limits, the qualifying zip codes, the homebuyer education requirement, and the underwriting nuances that come with layering a second mortgage on top of an MSHDA first. We have gotten a lot of Northern Michigan buyers to closing using this program.

Who the Program Is Designed For

  • First-time homebuyers who have stable income but limited savings for a down payment
  • Repeat buyers purchasing in a qualifying zip code who meet income limits
  • Buyers who want to preserve cash reserves rather than put everything into a down payment
  • Anyone earning a working-wage income in a Northern Michigan community where home prices have outpaced saving capacity
  • FHA buyers who want to reduce or eliminate out-of-pocket closing costs
  • Buyers combining this program with the FHA Repair Escrow for maximum benefit on properties needing minor repairs

What the Homebuyer Education Requirement Actually Is

MSHDA requires all MI 10K DPA borrowers to complete an approved homebuyer education course before closing. This is not a hoop to jump through -- it is a legitimate class that covers budgeting, the mortgage process, homeownership costs, and what to expect as a new homeowner. It can be completed online in most cases and takes a few hours.

We build this into the process early so it is never a last-minute closing delay. Most buyers complete it well before their closing date and find it genuinely useful.

MI 10K DPA At a Glance

Max Assistance$10,000
Interest Rate0%
Monthly PaymentNone
Min Credit Score640
Income LimitsYes -- by county
Homebuyer EdRequired
Qualifying Zip Codes236 statewide
RepaymentAt sale/refi/payoff

Is Your Zip Code Eligible?

Give us your zip code and we will check MSHDA eligibility immediately. If you qualify, we walk through the full picture -- income limits, purchase price limits, and what you need at closing.

Check Eligibility Now Quick Pre-Qual

What You Need to Qualify

Six requirements. Meet all six and you have a strong application.

1
640+ Credit Score

Minimum credit score for all borrowers on the loan. Below 640, MSHDA programs are not available.

2
Income Within MSHDA Limits

Household income limits vary by county and household size. Updated annually by MSHDA. We confirm current limits for your county.

3
Qualifying Zip Code

The property must be in one of 236 MSHDA-designated zip codes statewide. Many Northern Michigan communities qualify.

4
MSHDA MI Home Loan First Mortgage

The 10K DPA must be paired with an MSHDA MI Home Loan -- available as FHA, VA, USDA, or conventional depending on buyer eligibility.

5
Homebuyer Education Class

All borrowers must complete an MSHDA-approved homebuyer education course before closing. Most are available online.

6
Purchase Price Within Limits

MSHDA sets purchase price limits by county. For most Northern Michigan counties these limits work well with local home prices.

What This Looks Like at Closing

A real-world example of what MI 10K DPA does to your out-of-pocket costs.

Purchase Price (example) $200,000
FHA Down Payment Required (3.5%) $7,000
Estimated Closing Costs $4,000
Total Cash Needed Without DPA $11,000
MI 10K DPA Applied -$10,000
Estimated Out-of-Pocket at Closing ~$1,000

This is an illustrative example only. Actual closing costs, down payment, and cash-to-close vary based on purchase price, loan type, lender fees, prepaid items, and other factors. Rates and program availability subject to change. Not a loan commitment.

How the MI 10K DPA Process Works

From first conversation to closing day with down payment assistance.

1

Eligibility Check

We verify your zip code, run a quick credit check, and confirm your household income falls within MSHDA limits for your county. This takes minutes and tells us immediately whether MSHDA is available for your purchase.

2

Start Homebuyer Education

We point you toward an MSHDA-approved homebuyer education provider early in the process. Most courses are available online and take a few hours. Getting this done before you go under contract keeps it from becoming a closing delay.

3

MSHDA Pre-Approval

We run your full pre-approval through the MSHDA MI Home Loan system -- credit, income, and assets verified and documented. Your pre-approval letter shows both your first mortgage amount and the down payment assistance.

4

Find Your Home and Go Under Contract

Once pre-approved, you shop with confidence. Your real estate agent submits offers on your behalf with a strong MSHDA pre-approval in hand.

5

Underwriting -- First and Second Mortgage

Both the first mortgage and the second mortgage (the DPA) go through MSHDA underwriting simultaneously. We manage the combined process and keep you updated throughout.

6

Close With Significantly Less Cash

At closing, the $10,000 DPA is applied toward your down payment and closing costs. You sign for both mortgages -- the first at your regular rate and the second at zero percent with no monthly payment.

Frequently Asked Questions

It is a second mortgage, not a grant. You borrow up to $10,000 at zero interest with no monthly payments. The full amount is repaid when you sell the home, refinance, or pay off your first mortgage -- whenever that happens. There is no forgiveness component and no timeline after which it disappears. It is deferred, interest-free debt that sits behind your first mortgage.
Many Northern Michigan zip codes qualify including areas across Wexford, Missaukee, Osceola, Roscommon, Crawford, Otsego, Antrim, Kalkaska, and surrounding counties. The specific qualifying zip code list is maintained by MSHDA and is updated periodically. Give us your zip code and we will check it immediately -- this takes about 30 seconds.
Yes -- the MI 10K DPA is available to both first-time and repeat buyers in qualifying zip codes. You do not have to be a first-time homebuyer to access this program, which is a common misconception. You do need to meet income limits, credit requirements, and be purchasing in a qualifying zip code.
The MI 10K DPA must be paired with an MSHDA MI Home Loan first mortgage, which is available as FHA, VA, USDA, or conventional depending on the buyer's eligibility. FHA is the most common first mortgage type used with this program for first-time buyers. VA-eligible veterans can pair the DPA with a VA first mortgage through MSHDA as well.
All borrowers on the loan must complete an MSHDA-approved homebuyer education course before closing. Most courses are available online through MSHDA-approved providers and take a few hours to complete. You receive a certificate upon completion that is submitted to the lender. We recommend completing this early in the process -- well before you go under contract -- so it does not become a last-minute issue.
Yes -- MI 10K DPA can be combined with FHA Repair Escrow on eligible properties. This means a qualifying buyer could receive up to $10,000 toward their down payment and closing costs while also financing up to $10,000 in needed repairs into the loan. Both programs run through the same FHA first mortgage. This combination is one of the most powerful tools available for first-time buyers purchasing older homes in Northern Michigan.

Down Payment Holding You Back?
Let's Fix That.

If you are in a qualifying zip code and your income is within MSHDA limits, there may be $10,000 sitting on the table for your down payment right now. Takes five minutes to find out. Call, text, or fill out the form.

Check If You Qualify Free Consultation

Kirby and Angie Mortgage Loan Team | Union Home Mortgage | NMLS #2229229 | Angie Anderson NMLS #1999286 | Kirby Slocum NMLS #680817 | Licensed in Michigan, Ohio, and Indiana | Equal Housing Lender. MSHDA MI 10K DPA program availability, qualifying zip codes, income limits, and purchase price limits subject to change without notice. Program terms determined by MSHDA. Kirby and Angie Mortgage Loan Team is an approved MSHDA lender. All loans subject to credit approval, underwriting review, and MSHDA eligibility requirements. Information provided is for educational purposes and does not constitute a loan commitment or guarantee of financing.