Last updated: July 14, 2026
Bottom line
Michigan has real help with a home down payment, but most programs are not grants made only for single mothers. The main statewide choice is the MI 10K DPA Loan. It may provide up to $10,000 for a down payment, closing costs, and prepaid costs when used with a Michigan State Housing Development Authority (MSHDA) MI Home Loan.
The MI 10K DPA is a zero-interest loan with no monthly payment. It is not free money. You repay it when certain events happen, such as selling or refinancing the home, paying off the first mortgage, or no longer living there as your main home.
Single mothers, single parents, pregnant mothers, caregivers, and other buyers may qualify under the same income, credit, property, lender, and education rules. Start with a housing counselor and a participating lender before you shop for a home. For wider help, use the national housing guide and the Michigan help page while you make your plan.
If you need housing help today
Down payment help will not fix an eviction, shutoff, unsafe home, or shelter need right away. Call 2-1-1 or use Michigan 211 housing help to ask about shelter, rent help, utility help, and the Housing Assessment and Resource Agency for your county.
You can also check emergency rent help, Section 8 help, and utility bill help. Stabilizing your current home may be the safest first step before taking on a mortgage.
Where to start
Begin with a housing counselor before you pay fees or sign a purchase agreement. A counselor can review your income, debt, credit reports, savings, and monthly budget. Call HUD at 800-569-4287 or use the HUD counselor search to find an approved agency.
Michigan also has a MSHDA housing locator for counseling agencies and experienced loan officers. Ask whether the class or counseling has a fee, how long the certificate stays valid, and what you should complete before applying.
First: check readiness
Review debt, savings, credit, work income, benefits, child support records, and monthly family costs.
Next: check MSHDA
Ask a participating lender to test your file against current MI Home Loan and MI 10K DPA rules.
Then: check local funds
City and county programs may have separate lenders, classes, inspections, or funding limits.
Keep your records together as you make calls. The documents checklist can help you build one file for housing and benefit applications.
Quick program table
| Program path | What it may do | Where to apply | Reality check |
|---|---|---|---|
| MI 10K DPA | Up to $10,000 for down payment, closing costs, and prepaid costs | MSHDA participating lender | Deferred zero-interest loan, not a grant |
| MI Home Loan | State mortgage path for first-time buyers and some repeat buyers | Experienced MSHDA lender | Credit, income, price, property, and class rules apply |
| Local program | May help with down payment, closing costs, or a financing gap | City, county, or approved partner | Funds may pause or run out |
| MCC tax credit | May reduce federal income tax owed for eligible buyers | Approved MCC lender before purchase | Not cash for closing; tax results vary |
MSHDA statewide homebuyer help
MI Home Loan
The MI Home Loan program is available to first-time homebuyers across Michigan. MSHDA treats a buyer as first-time if the buyer has not owned a home during the past three years. Repeat buyers may qualify when the home is in a targeted area.
As of June 1, 2026, MSHDA lists a statewide sales price limit of $566,355 and a minimum credit score of 640. Income limits change by county, household size, and whether the address is in a targeted area. Check the 2026 MSHDA limits and let a participating lender confirm which line applies to the exact property.
You do not apply to MSHDA by sending a general benefits form. You work through a lender on the MSHDA lender list. The lender checks the mortgage, requests the assistance, and sends the file for program review.
MI 10K DPA Loan
The MI 10K DPA Loan may provide up to $10,000. The money can go toward the down payment, closing costs, and prepaid items such as taxes or insurance. You must use it with a qualifying MI Home Loan, and all buyers must complete approved homebuyer education.
No monthly payment is due on the DPA loan, but the balance does not vanish. It becomes due after listed events, including sale, refinance, payoff of the first mortgage, transfer of ownership, or when the home is no longer your main residence. Ask the lender to show you the second-mortgage note and repayment terms before closing.
Do not call every program a grant
A true grant usually does not have to be repaid when you follow the rules. A deferred loan is paid later. A forgivable loan may be reduced after you live in the home for a set time. A tax credit can lower taxes but does not place cash in your bank account. Read every note, lien, and deed rule.
First-Generation DPA pilot
The First-Generation DPA page says the pilot is closed because all funds were used. Applications are not being accepted, and there is no waitlist. Do not pay anyone who claims they can place you on a secret list.
Mortgage Credit Certificate
The Mortgage Credit Certificate is not down payment money. Qualified buyers may claim a federal tax credit equal to 20% of yearly mortgage interest paid, subject to tax rules. You must apply and receive approval through an approved MCC lender before buying the home.
The updated 2026 MSHDA limit sheet lists the $566,355 sales price cap for both MI Home Loan and MCC. Because tax credits depend on your tax return and tax liability, ask a qualified tax preparer how the credit may affect your household.
City and county programs to check
Local help is tied to where you live or where you buy. Rules may cover income, first-time buyer status, lender choice, homebuyer education, inspections, lead paint, owner occupancy, and your own cash contribution. Confirm that funds are available before making an offer.
| Area | Current help | Who may qualify | Apply and check |
|---|---|---|---|
| Detroit | Current Phase III may provide up to $25,000 | Eligible Detroit residents who meet first-time buyer, income, lender, education, and property rules | Use the Detroit DPA page; ask about current priorities and remaining funds |
| Grand Rapids | Up to $7,500 for down payment, closing costs, and prepaid costs | Buyers within 80% of area median income who meet asset, education, lender, property, and five-year occupancy rules | Start with a lender listed by the Grand Rapids fund; the lender submits the request |
| Lansing | City down payment assistance and homebuyer resources | Income-qualified buyers purchasing within city rules | Check the Lansing DPA page; ask the city or listed partner for the current amount and funding status |
| East Lansing | Homebuyer education and possible down payment or closing-cost help through a partner | Low- to moderate-income buyers who meet current city and partner rules | Use the East Lansing programs; Capital Area Housing Partnership handles current services |
| Kalamazoo County | Up to $5,000 from the county plus up to $2,000 for closing costs from Independent Bank | Buyers at or below 120% of county area median income who buy a main home, take counseling, use Independent Bank, and contribute at least $1,000 | Follow the Kalamazoo County program; confirm the current income table before applying |
| Oakland County | $5,000 grant for down payment or closing costs | Eligible first-time buyers at or below 120% of area median income who use Independent Bank, take counseling, and contribute at least $1,000 | Start at the Oakland County program; funds are first-come and subject to availability |
| Washtenaw County | Education, counseling, credit help, and possible down payment assistance | Households living in and buying in Washtenaw County under current program rules | Use the Washtenaw buyer page; ask which funds are open and what amount is available |
If your area is not listed, call your city housing office, county community development office, or a local nonprofit. The community action guide and local 211 guide can help you find nearby offices.
Mortgage options that may lower upfront cash
Down payment assistance is only one part of the deal. The loan type changes your down payment, mortgage insurance, property rules, monthly payment, and closing costs.
| Loan type | Possible benefit | Main check | Reality check |
|---|---|---|---|
| FHA | Down payment may be as low as 3.5% | Ask an FHA-approved lender and review HUD loan basics | Mortgage insurance and property standards apply |
| USDA Guaranteed | May offer 100% financing in an eligible rural area | Check income, address, and lender rules on the USDA loan page | No down payment does not mean no closing costs |
| VA | Eligible borrowers often need no down payment | Review VA home loans and request a Certificate of Eligibility | Lender approval, appraisal, and possible funding fee still matter |
| Conventional | May offer low-down-payment choices | Compare at least two lenders | Private mortgage insurance may apply |
Eligible veterans, service members, and some surviving spouses can also use the veteran benefits guide. Ask a MSHDA lender whether your preferred loan type can be paired with the current state program before writing an offer.
Documents and information to gather
A lender or local program may ask for more records. Gather these items early, but do not email private documents to an address you have not confirmed.
| Item | Why it is needed | Helpful step |
|---|---|---|
| Photo ID and Social Security numbers | Identity and credit checks | Keep copies for each borrower |
| Pay stubs and work records | Current earnings and job history | Ask how many weeks or months are needed |
| Benefit and child support records | Income review when the lender can count it | Ask what proof and payment history are required |
| Bank statements | Savings, deposits, assets, and cash to close | Explain large deposits before underwriting |
| Tax forms | Income history and self-employment review | Self-employed buyers may need more records |
| Debt statements | Monthly debt and payoff amounts | Do not open new credit without asking the lender |
| Education certificate | Required by MSHDA DPA and many local programs | Take the approved class early |
| Purchase agreement | Property, price, and closing date review | Ask when funds must be reserved |
Check the full cost before buying
A $10,000 assistance loan may lower the cash due at closing, but it does not make a costly home affordable. Add the mortgage, property taxes, homeowners insurance, mortgage insurance, utilities, child care, transportation, food, repairs, and emergency savings.
Ask each lender for a Loan Estimate. The CFPB Loan Estimate guide explains the interest rate, monthly payment, cash to close, and loan costs. Compare the same loan amount and loan type from more than one lender.
- Ask whether the interest rate is locked.
- Ask what costs can change before closing.
- Ask whether seller credits are allowed.
- Ask how much money you will have left after closing.
- Budget for repairs that are not covered by insurance.
If food, child care, transportation, or other bills are using most of your income, check SNAP food help, child care help, and transportation help before choosing a monthly payment.
Common mistakes to avoid
- Shopping before preapproval. The price, address, or condition may not fit the program.
- Counting closed funds. The First-Generation pilot has ended and has no waitlist.
- Moving money without asking. Large deposits and account transfers may need proof.
- Opening new credit. A car loan or credit card can change your approval before closing.
- Skipping an inspection. Program checks are not a full home inspection for your protection.
- Ignoring repayment terms. Deferred help may become due when you sell or refinance.
If you are denied, delayed, or not ready
Ask the lender or program for the reason in writing. The problem may be credit, debt, missing records, income history, funds to close, property condition, purchase price, an expired class, or a program rule. Take the written reason to a HUD-approved counselor and ask for a step-by-step repair plan.
Do not send many new applications without knowing what caused the first denial. Another lender may have a different product, but the same debt or document problem may remain. The denied or delayed guide can help you keep notes, ask for written decisions, and plan follow-up calls.
A safe backup plan
It may be better to rent longer, lower debt, build savings, correct credit report errors, or choose a lower home price. Use Michigan housing help and the Michigan assistance guide to check other support while you prepare.
If you face housing discrimination
A lender, seller, real estate worker, or housing provider cannot lawfully treat you differently because of a protected trait. Being a single mother by itself is not always a separate protected class, but discrimination may involve sex, pregnancy, family status, disability, race, national origin, religion, age, or another protected ground.
If you believe discrimination affected your home search or financing, contact the Michigan fair housing office at 800-482-3604. Keep copies of ads, emails, messages, loan papers, dates, and names. This guide gives general information and is not legal advice.
Phone scripts
Call a housing counselor
“Hi, I want to buy a home in Michigan. Can you review my budget, credit, debt, savings, and down payment options before I apply with a lender?”
Call a MSHDA lender
“Hi, do you offer the MI Home Loan and MI 10K DPA? Please check the current income, credit, sales price, education, and property rules for my household and the area where I want to buy.”
Call a local program
“Hi, is your down payment program accepting buyers now? What amount is available, what lender and class do I need, and when must funds be reserved?”
Ask about a denial
“Please give me the main reason for the denial in writing. What exact change or missing document would be needed before you could review my file again?”
Resumen en español
Michigan ofrece ayuda real para el pago inicial, pero el programa MI 10K DPA no es dinero gratis. Es un préstamo sin interés y sin pago mensual que debe pagarse cuando vende, refinancia, paga la primera hipoteca o deja de vivir en la casa.
Primero hable con un consejero de vivienda aprobado por HUD y con un prestamista de MSHDA. Pregunte por los límites de ingresos, crédito, precio de la casa, clases, documentos y fondos disponibles. Si necesita vivienda urgente, llame al 2-1-1 antes de comenzar el proceso de compra.
Frequently asked questions
Are there Michigan homebuyer grants only for single mothers?
No. Most programs are open to eligible buyers based on income, credit, first-time buyer status, location, property rules, lender approval, and available funds.
Is the MI 10K DPA free money?
No. It is a zero-interest loan with no monthly payment. It must be repaid after certain events, such as sale, refinance, first-mortgage payoff, or moving out.
What are the main MI Home Loan limits in 2026?
MSHDA lists a 640 minimum credit score and a $566,355 statewide sales price limit after June 1, 2026. Income limits vary by location and household size.
Can I use child support as mortgage income?
A lender may count stable, documented child support when its rules are met. Ask what court order, payment history, and expected continuation period are required.
Can local help be combined with MSHDA assistance?
Sometimes. Each program and lender decides what can be combined. Ask both programs before making an offer because total assistance and lien rules may apply.
What should I do if I am behind on rent?
Focus on the current housing crisis first. Call 2-1-1, ask about rent or shelter help, and talk with a housing counselor before taking on a mortgage.
About this guide
This guide uses official federal, state, local, and other high-trust nonprofit and community sources mentioned in the article.
A Single Mother is independent and is not a government agency, benefits office, lender, law firm, medical provider, or tax advisor.
Program rules, funding, local availability, and eligibility can change. Always confirm details with the official program before you apply or make decisions.
Last updated: July 14, 2026. Next review: October 14, 2026.
Verification: Last verified July 14, 2026, next review October 14, 2026.
Corrections: If you see something wrong or outdated, email suggestions@asinglemother.org.
Disclaimer: This article is for general information only. It is not legal, financial, medical, tax, immigration, disability, safety, or government-agency advice.