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Get Matched Free →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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
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.
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.
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.
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.
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.
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.