Amanda Forrester / news@whmi.com

The Michigan State Housing Development Authority launched a new program to help first-generation homebuyers.

The First-Generation Down Payment Assistance program will offer eligible buyers a $25,000 down payment assistance deferred loan to help with upfront costs, including the down payment, closing costs and prepaid expenses, a press release said.

The program is supported by $8 million in state budget appropriations.

“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,” Amy Hovey, Chief Executive Officer and Executive Director of MSHDA, said. “With rents soaring, this program offers families a foot in the door and much-needed stability by helping secure a home with a fixed monthly cost. This financial boost will allow first-generation homebuyers to invest in their futures, strengthen their communities and build generational wealth.

To qualify, applicants must meet the following requirements:

All applicants must meet the definition of first-generation homebuyer, have no prior history of homeownership in the last three years and must use the property as their primary residence.
Applicants must fall within the household income limits set by MSHDA.
A minimum credit score of 640 is required.
The target property sale price cannot be more than $224,500.
No parent of the borrower(s) has owned a home in the last three years.
The First-Generation DPA must be combined with a MI Home Loan (conventional, FHA or USDA).
All borrowers must complete a face-to-face homebuyer education class offered by a HUD-approved housing counseling agency.
Applicants must meet all other program eligibility requirements.

“Governor Whitmer and I are standing tall so more working families can find an affordable place to live in vibrant communities across Michigan,” Lt. Governor Garlin Gilchrist II said. “Today’s announcement will help more families cover upfront home buying costs, keeping money in their pocket, where it belongs. It builds on our historic investments to expand affordable housing across Michigan and MSHDA’s record success each of the last two years. Let’s keep working together to make housing more accessible.”

Officials said the program builds on other homeownership programs like the MI Home Loan Mortgage, MI 10K DPA and the Housing Education Program.

“It was designed based on an assessment of MSHDA’s MI 10K DPA program, which revealed the need to increase opportunities for aspiring homebuyers who don’t benefit from generational wealth.”

The program is available in all 83 Michigan counties.

For more information, click the link below.