Your Guide to First-Time Homebuyer Grants - Starting with Michigan!

‍What are First-Time Homebuyer Grants?

First-time homebuyer grants are funds that are made available by government agencies, non-profit organizations, and other groups to help first-time buyers purchase their first home. These grants can be used for a variety of expenses, including down payments and closing costs. Unlike loans, grants do not need to be repaid, making them an attractive option for many first-time buyers.

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How to Qualify for First-Time Homebuyer Grants

Qualifying for first-time homebuyer grants will depend on the specific grant program. In general, you'll need to be a first-time homebuyer, meaning you haven't owned a home in the past three years. You'll also need to meet income and credit requirements, as well as any other eligibility criteria specific to the grant program. Here are a couple of active programs in Michigan: 

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Michigan State Housing Development Authority (MSHDA) Down Payment Assistance Program

The MSHDA offers down payment assistance loans rather than grants. The assistance comes in the form of a second mortgage with 0% interest and does not require monthly payments. You simply pay back the amount you borrowed when you sell the home, refinance, or pay off your mortgage in full.

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• MI DPA Loan Program: allows you to borrow $7,500 anywhere in Michigan. That’s more than the average 3% down payment in the state. 
• MI 10K DPA Loan Program: If you are buying in one of the 236 ZIP codes and are using an MI Home Loan, MSHDA offers loan amounts of up to $10,000. 

Find more information about this program here. 

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Grand Rapids’ Homebuyer Assistance Fund (HAF)

‍If you’re looking to buy in the city of Grand Rapids, this grant provides up to $7,500 for low- and moderate-income homebuyers. Buyers can use the money toward their down payment, closing costs, and prepaid expenses. Find more information about this program here.

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How can I find grant opportunities and how can Foyer help? 

To find first-time homebuyer grants in Michigan, start by contacting your state or local housing authority. You can also search online for grant programs offered by non-profit organizations and other groups. Some real estate agents may also be able to help you find grant programs in your area. Foyer is committed to helping you on your homeownership journey. Our savings platform includes educational resources to help you become aware of grant opportunities and first time homebuyer programs in your local market. Join Foyer to get started on your path to homeownership!