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Homebuyer Programs in Dearborn, MI (2026)

Population: 106,720 | Median home price: $250,000 | Est. closing costs: $5,000 - $7,500

Last updated April 10, 2026

Skyline of Dearborn, MI

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

City of Dearborn First-Time Homebuyer Assistance Program
Type:
Forgivable Loan
First-time only:
Yes

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

Habitat for Humanity Detroit Homeownership Program
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

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