See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 10, 2026
Homebuyer Programs in Dearborn, MI (2026)
Dearborn is a vibrant city in Wayne County, Michigan, just west of Detroit, known as the headquarters of Ford Motor Company and home to a diverse community of over 106,000 residents. With a median home price of around $250,000, Dearborn offers more affordable entry points than many metro Detroit suburbs. The City of Dearborn operates its own First-Time Homebuyer Assistance Program funded through federal HOME and CDBG allocations. At the state level, the MSHDA MI 10K DPA Loan provides up to $10,000 in zero-interest down payment assistance, and the HomeBoost Down Payment Assistance grant offers up to $15,000. By combining city and state programs, Dearborn buyers can access meaningful assistance toward their home purchase.
City Programs in Dearborn
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Dearborn First-Time Homebuyer Assistance Program | Forgivable Loan | — | Yes | View → |
- Type:
- Forgivable Loan
- First-time only:
- Yes
State Programs in Michigan
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| HomeBoost Down Payment Assistance | Grant | Up to $15,000 (up to $25,000 through some participating lenders) | Yes | View → |
| MSHDA First-Generation Down Payment Assistance | Deferred Loan | Up to $25,000 | Yes | View → |
| MSHDA MI 10K DPA Loan | Zero-Interest Loan | Up to $10,000 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $15,000 (up to $25,000 through some participating lenders)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $25,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Detroit Homeownership Program | Forgivable Loan | Below-market-price homes with affordable mortgage terms | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Below-market-price homes with affordable mortgage terms
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Review MSHDA income limits for Wayne County and confirm you meet first-time homebuyer requirements. The City of Dearborn program targets low to moderate income households per HUD guidelines.
Step 2: Complete homebuyer education. Enroll in a HUD-approved homebuyer education course. Wayne Metro Community Action Agency offers monthly Homebuyer Club classes and can be reached at 313-388-9799. Online courses are also available through eHome America.
Step 3: Contact the City of Dearborn. Reach out to the City of Dearborn Economic and Community Development Department to learn about their First-Time Homebuyer Assistance Program and current funding availability.
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: Find a home within program guidelines. For the City of Dearborn program, the home must be within Dearborn city limits. Ensure the home meets program requirements and any purchase price limits.
Step 6: Submit your applications. Work with your lender and the City of Dearborn to complete all DPA applications. Allow 30-60 days for processing alongside your mortgage.
Frequently Asked Questions
How much down payment assistance can I get in Dearborn?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can purchase with assistance?+−
What homebuyer education is required?+−
Is Dearborn eligible for the Wayne County DPA through National Faith Homebuyers?+−
Are there affordable homeownership options in Dearborn?+−
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