You probably don’t need 20% down.
Almost everyone I talk to believes a down payment has to be five figures before they are allowed to look at houses. Michigan has programs built specifically to close that gap — and most people who assume they cannot afford it have simply never been told these exist.
Whether it is a statewide program, a county or city program, or a combination, there is often help with both the down payment and the closing costs. I’ll confirm what you actually qualify for right now, with today’s rules.
- Help with down payment and closing costs
- Michigan programs, checked against today’s rules
- Pairs with FHA or Conventional
- No cost, no obligation to talk
See what assistance you qualify for
Name, number, email — and James checks the current programs for you.
As low as 3%
Down payment on some first-time buyer loans
MSHDA + local
Statewide, county and city programs
Closing costs too
Many programs help with both
Independent broker
Sponsored by The Loan Factory, NMLS# 320841
Every buyer’s situation is different. I don’t run people through a template — I tailor your scenario individually and find the benefit in your circumstances, wherever you’re starting from.
The money part
How Michigan down payment assistance generally works.
Plain version, no jargon. The specifics change year to year and county by county, so treat this as the shape of it — and let me confirm the details against your situation.
Statewide programs through MSHDA
The Michigan State Housing Development Authority runs first-time buyer programs that pair a mortgage with help toward your down payment and closing costs. Eligibility rules — income limits, purchase price limits, credit, and a homebuyer education course — are specific, which is exactly why it is worth having someone check rather than guess.
County, city and community programs
Wayne, Oakland and Macomb counties, the City of Detroit, and a number of individual communities run their own first-time buyer assistance programs, often alongside nonprofit housing agencies. Some help with the down payment, some with closing costs, some with both.
What the assistance usually looks like
It is normally not a gift you get handed at closing. Most often it is a second loan, frequently with no monthly payment, that is forgiven over time if you stay in the home — or repaid when you sell or refinance. Sometimes it is a forgivable loan, sometimes it is silent until payoff. The terms matter more than the headline, and James goes through them line by line.
Stacking it with the right first mortgage
Assistance works alongside your first mortgage rather than replacing it. Most often it pairs with FHA or a Conventional first-time buyer loan. Matching the help to the right first loan — rather than taking whichever one gets mentioned first — is where a lot of the real saving shows up.
Program rules, funding and availability change, and each program sets its own income and eligibility limits. Nothing here is a promise that you qualify — it is a starting point, and the fastest way to a real answer is a short conversation.
Worth checking
Most people who think they cannot afford it have never had anyone check.
What lenders actually look at
The four things that decide your file.
Not a checklist you have to pass before you are allowed to call me. The opposite — these are the numbers we go through together, so you know where you stand instead of guessing.
Credit
Every program sets its own minimum. FHA is generally more forgiving than Conventional, and VA is often the most flexible of all for eligible buyers. A lower score does not automatically end the conversation — sometimes a few months of targeted work changes what you qualify for, and it is worth knowing which moves actually matter.
Income and employment
Lenders want steady, documented income and a work history they can verify. Salaried, hourly, commission and self-employed income are all workable — they are just documented differently. Assistance programs also cap income, so how yours is counted genuinely matters.
Debt-to-income
Lenders compare your total monthly debt payments — car, student loans, credit cards, plus the new mortgage — to your gross monthly income. Even with a great score, too much existing debt can limit what you can borrow. Paying down a card before you apply is sometimes worth more than waiting on a rate.
The money in the file
Two separate things: the down payment, and closing costs. Assistance programs exist for both, and lenders still want to see that the funds are real, documented and yours. Gift funds from a family member are allowed on most programs — they just need a paper trail.
How it works
Three steps, and the first one takes a minute.
Tell James a little about you
Your name, number and email, plus anything you already know about your savings and timeline. That is the whole ask — no documents, no credit pull, no account to create.
He checks what you actually qualify for
He looks at your county, your income, your credit and your savings against the programs currently available, and confirms the current eligibility rules instead of quoting you last year’s numbers.
You get the numbers in plain English
What you would put down, what the assistance would cover, what your monthly payment looks like, and what you would owe later. Then you decide — with no pressure either way.
The worst case is you find out you already qualify. The second worst case is you find out exactly what to work on.
See what I qualify forThe questions I get most
Straight answers on assistance.
Do I have to be a first-time buyer?
Many of these programs are built for first-time buyers, and the definition is often more generous than people expect — in a lot of cases it means you have not owned a home in the past three years, which can include people who owned long ago or owned with a former spouse. Some programs also serve repeat buyers in certain areas. James confirms the rule for each program rather than assuming.
Do I have to pay the assistance back?
Usually not if you stay in the home. Most Michigan assistance is structured as a second loan with no monthly payment, and it is forgiven over a set number of years as long as you keep the home as your primary residence. If you sell or refinance early, the balance typically comes due. The exact terms differ per program and per lender, and James walks you through them before you commit to anything.
Can I use it with an FHA loan?
Very often, yes. FHA is the loan most commonly paired with down payment assistance, and it is usually the easiest combination for a first-time buyer with thinner credit or a smaller down payment. Conventional pairings exist too and sometimes come out cheaper over the long term. Which one wins depends on your numbers — that is the conversation.
How long does it all take?
The assistance itself usually adds days, not months. The bigger variable is you: how quickly you get your documents in, and whether any of it needs a homebuyer education course, which is a short class and can often be done online. Pre-approval is commonly days once your paperwork is in, and offer to keys is usually around 30 days for a clean file.
Are the amounts I read online the real amounts?
They change, and they change often — funding runs in rounds, income limits are updated, and a program open last year may be paused today. So rather than quote you a number off a website, James checks the current rules and tells you what is actually available to you right now. That is the only answer worth having.
James Cox, The Loan Strategist
Find out what help you actually qualify for.
One short call and you will know whether assistance applies to you, how much of your down payment it could cover, and what the terms really are. Free, and you are not committing to anything.
Serving Wayne, Oakland and Macomb counties · Independent broker sponsored by The Loan Factory