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Homebuyer Programs in Grand Rapids, MI (2026)

Population: 205,692 | Median home price: $285,000 | Est. closing costs: $5,500 - $8,500

Last updated April 10, 2026

Skyline of Grand Rapids, MI

Grand Rapids is West Michigan's largest city and one of the fastest-growing metros in the state, with a median home price of around $285,000. The City of Grand Rapids offers a Homebuyer Assistance Fund providing up to $7,500 as a forgivable loan at 0% interest, forgiven after 5 years of owner-occupancy. Lake Michigan Credit Union's HomeAssist program offers qualifying first-time buyers up to $10,000 (or $15,000 in targeted areas) as a zero-interest second mortgage. At the state level, the MSHDA MI 10K DPA Loan provides up to $10,000 in zero-interest down payment assistance. By combining local and state programs, Grand Rapids homebuyers could potentially access over $27,500 in total assistance.

City Programs in Grand Rapids

Grand Rapids Homebuyer Assistance Fund
Type:
Forgivable Loan
Amount:
Up to $7,500
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

LMCU HomeAssist Down Payment Assistance
Type:
Zero-Interest Loan
Amount:
Up to $10,000 (up to $15,000 in targeted areas)
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. The Grand Rapids Homebuyer Assistance Fund requires low- to moderate-income status, no more than $10,000 in household assets, and no homeownership in the past 3 years. The MSHDA MI 10K DPA has income limits that vary by county, with a minimum credit score of 640.

Step 2:

Complete homebuyer education. All programs require a homebuyer education course. ICCF Community Homes at (616) 336-9333 is a HUD-approved housing counseling agency in Grand Rapids offering courses for $20 per person. Certificates are approved by both HUD and MSHDA.

Step 3:

Get pre-qualified by a lender. For the MSHDA MI 10K DPA, you must work with an MSHDA-approved lender. For the Grand Rapids Homebuyer Assistance Fund, contact the Community Development Department at (616) 456-3677 or communitydev@grcity.us for guidance on participating lenders.

Step 4:

Find a home within program limits. The MSHDA program has a statewide purchase price limit of $544,233. The Grand Rapids Homebuyer Assistance Fund requires the property to be within Grand Rapids city limits and it must pass a detailed inspection.

Step 5:

Submit your applications. Apply for the Grand Rapids Homebuyer Assistance Fund through the City's Community Development Department. For the MSHDA MI 10K DPA, your MSHDA-approved lender will process both the first mortgage and DPA together. You must contribute at least 1% of the purchase price toward the MSHDA loan.

Step 6:

Close on your home and maintain residency. The Grand Rapids HAF requires 5 years of owner-occupancy for the loan to be fully forgiven. The MSHDA DPA is due upon sale, transfer, or refinance.

Frequently Asked Questions

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