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Homebuyer Programs in Detroit, MI (2026)

Population: 645,705 | Median home price: $82,000 | Est. closing costs: $1,500 - $2,500

Last updated April 10, 2026

Skyline of Detroit, MI

Detroit is Michigan's largest city and the center of a historic economic revitalization, with a median home price of around $82,000 making it one of the most affordable major cities in the country. The City of Detroit offers a standout Down Payment Assistance Program providing grants of up to $25,000 for qualifying first-time homebuyers. Buyers can also access the National Faith Homebuyers Wayne County DPA, a $13,999 forgivable loan at 0% interest forgiven after 5 years, and the Rehabbed and Ready DPA Program for homes listed through the Detroit Land Bank Authority. At the state level, the MSHDA MI 10K DPA Loan provides up to $10,000 in zero-interest down payment assistance. By combining city, county, and state programs, Detroit homebuyers could potentially access over $48,000 in total assistance.

City Programs in Detroit

Detroit Down Payment Assistance Program
Type:
Grant
Amount:
Up to $25,000
First-time only:
Yes

County Programs in Wayne County

National Faith Homebuyers Wayne County DPA
Type:
Forgivable Loan
Amount:
$13,999
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

Rehabbed and Ready Down Payment Assistance Program
Type:
Grant
Amount:
Up to 20% of purchase price
First-time only:
No

How to Apply

Step 1:

Check your eligibility. Most Detroit programs require household income at or below 80% of Area Median Income (AMI). The City of Detroit DPA also requires 12 months of Detroit residency. Review each program's requirements to determine which ones you qualify for.

Step 2:

Complete homebuyer education. All programs require completion of a HUD-approved homebuyer education course. National Faith Homebuyers at (313) 255-9500 offers courses and is a HUD-approved housing counseling agency serving the Detroit metro area.

Step 3:

Get pre-qualified by a lender. For the MSHDA MI 10K DPA Loan, you must work with an MSHDA-approved lender. For the Detroit DPA, any participating lender can pre-qualify you. Contact the Detroit Housing Resource HelpLine at 866-313-2520 (option 3) for guidance.

Step 4:

Find a home within program limits. The MSHDA program has a statewide purchase price limit of $544,233. The National Faith Wayne County DPA has a $374,199 limit. The Detroit DPA requires a 1-2 unit property within Detroit city limits.

Step 5:

Submit your applications. For the Detroit DPA, apply online at detroitmi.gov/DPA with your completed homebuyer education certificate, lender pre-qualification letter, and signed purchase agreement. You must contribute a minimum of $1,000 toward the purchase.

Step 6:

Close on your home. Once approved, the grant or loan funds are applied at closing to cover your down payment, closing costs, prepaids, and principal reduction. Maintain the property as your primary residence to meet program residency requirements.

Frequently Asked Questions

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