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Homebuyer Programs in Ann Arbor, MI (2026)

Population: 123,349 | Median home price: $450,000 | Est. closing costs: $9,000 - $13,500

Last updated April 10, 2026

Skyline of Ann Arbor, MI

Ann Arbor is a vibrant college city in southeastern Michigan, home to the University of Michigan and a strong local economy that drives median home prices to around $450,000. First-time buyers can access the MSHDA MI 10K DPA Loan for up to $10,000 in zero-interest down payment assistance, and the HomeBoost Down Payment Assistance grant for up to $15,000. Locally, Bank of Ann Arbor offers an additional $3,000 grant on top of MSHDA assistance, and Washtenaw County runs its own homebuyer assistance program. The Ann Arbor Community Land Trust sells newly built homes at $125,000 to $300,000, well below market rate. By stacking state and local programs, buyers in Ann Arbor can potentially receive over $25,000 in combined assistance toward their home purchase.

City Programs in Ann Arbor

Ann Arbor Housing Commission HCV Homeownership Program
Type:
Grant
Amount:
Housing Choice Voucher subsidy applied toward mortgage payments
First-time only:
No
Bank of Ann Arbor Housing Assistance Program
Type:
Grant
Amount:
Up to $3,000 grant plus up to $7,500 zero-interest loan via MSHDA
First-time only:
Yes

County Programs in Washtenaw County

State Programs in Michigan

HomeBoost Down Payment Assistance
Type:
Grant
Amount:
Up to $15,000 (up to $25,000 through some participating lenders)
First-time only:
Yes
MSHDA First-Generation Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $25,000
First-time only:
Yes
MSHDA MI 10K DPA Loan
Type:
Zero-Interest Loan
Amount:
Up to $10,000
First-time only:
Yes

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Ann Arbor Community Land Trust Homeownership Program
Type:
Forgivable Loan
Amount:
Homes priced between $125,000 and $300,000, significantly below market rate
First-time only:
No
Habitat for Humanity of Huron Valley Homeownership Program
Type:
Forgivable Loan
Amount:
Below-market-price homes; buyers provide minimum $1,000 down payment
First-time only:
No

How to Apply

Step 1:

Check your eligibility. Review MSHDA income limits for Washtenaw County and confirm you meet first-time homebuyer requirements for the programs you're interested in.

Step 2:

Complete homebuyer education. Enroll in a HUD-approved course through Michigan State University Extension Service in Ann Arbor at 734-997-1678, or complete Fannie Mae's free online HomeView course.

Step 3:

Contact a local housing partner. Reach out to Washtenaw County Office of Community and Economic Development or Bank of Ann Arbor to discuss available down payment assistance options.

Step 4:

Get pre-approved for a mortgage. Work with a MSHDA-approved lender to get pre-approved for an MI Home Loan, which qualifies you for the MI 10K DPA Loan and HomeBoost grant.

Step 5:

Explore the Ann Arbor Community Land Trust. If you qualify based on income, sign up for the A2CLT Buyer List at a2clt.org to be notified when below-market homes become available.

Step 6:

Find a home within program limits. Search for homes that meet MSHDA purchase price requirements and any additional program guidelines.

Step 7:

Submit your application. Work with your lender and housing counselor to complete all DPA applications. Allow 30-60 days for processing alongside your mortgage.

Frequently Asked Questions

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