Michigan first-time home buyer programs, explained

For most Michigan programs, including MSHDA's MI Home Loan, MI 10K DPA Loan, and Mortgage Credit Certificate, 'first-time buyer' means you haven't owned and occupied a home as your primary residence in the previous three years — not literally never having owned one. Some programs waive this rule entirely for buyers purchasing in a designated targeted area, and the federal government doesn't have one single universal definition either, so always check the specific program's current eligibility rules before assuming you do or don't qualify.

The main statewide option is MSHDA's MI 10K DPA Loan, which can provide up to $10,000 toward your down payment, closing costs, and prepaid expenses as an interest-free, deferred loan — meaning no monthly payments, with repayment due when you sell, refinance, or pay off your first mortgage. It's paired with an MI Home Loan and requires a homebuyer education course. See our Michigan down payment assistance page for more detail.

It depends on the loan type. MSHDA's MI Home Loan currently requires a minimum credit score of 640. FHA loans typically allow lower scores than many conventional programs, though exact minimums are set by individual lenders. Ask a lender directly what you qualify for based on your full financial picture, not just your credit score alone.

For MSHDA's own MI 10K DPA Loan, yes — it's only available paired with an MI Home Loan. However, other down payment assistance may be available through local municipalities, employer programs, or other nonprofit and lender-specific programs, which have their own separate rules. A knowledgeable loan officer can help you understand what else might be available in your specific area — First Keys can connect you with one at no cost.

There's no fixed timeline — it depends on how prepared your finances are going in, how competitive the market is in your target area, and how quickly each step (pre-approval, house hunting, inspection, underwriting) moves. Many buyers spend weeks to a few months preparing financially before they start house hunting, then another 30–45 days from an accepted offer to closing is typical once a loan is involved, though this can vary. Our full homebuying process roadmap walks through what to expect at each stage.

It's required for some programs — for example, MSHDA's MI 10K DPA Loan requires completion of a homebuyer education course. Even when it isn't strictly required, many first-time buyers find the class genuinely useful regardless of which loan they end up using. Your loan officer can point you to an approved course if your program requires one.

Most first-time buyers benefit from working with an agent who specifically has experience guiding first-time buyers — someone who can explain each step, review offers and paperwork with you, and answer questions without judgment. In most transactions, the seller pays the buyer's agent commission, but compensation structures can vary, so ask any agent directly how they're paid. First Keys can connect you with a Michigan agent who focuses on first-time buyers at no cost to you.

Yes. Fill out a short form on our Find a Loan Officer page and we'll pass your information along so a loan officer can reach out, usually within one to two business days, to talk through what you might qualify for. There's no cost or obligation to you.