See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 10, 2026
Homebuyer Programs in Muskegon, MI (2026)
Muskegon is a lakeside city in Muskegon County, Michigan, with a population of about 37,000 and a median home price around $170,000. The City of Muskegon offers its own Homebuyer Assistance Program providing down payment assistance to eligible households at or below 80% of the Area Median Income. At the state level, MSHDA's HomeBoost program provides up to $15,000 as a grant and the MI 10K DPA Loan offers up to $10,000 as a zero-interest loan. Habitat for Humanity Northern Muskegon is also building affordable homes in the area with estimated prices around $165,000. With Muskegon's affordable housing market and available city and state assistance, buyers can access meaningful help toward homeownership.
City Programs in Muskegon
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Muskegon Homebuyer Assistance Program | Forgivable Loan | Down payment assistance available | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Down payment assistance available
- 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 Northern Muskegon Homeownership Program | Repayable Loan | Affordable homes estimated at $165,000 | No | View → |
- Type:
- Repayable Loan
- Amount:
- Affordable homes estimated at $165,000
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The City of Muskegon Homebuyer Assistance Program requires household income at or below 80% of the Area Median Income. MSHDA programs generally require a minimum 640 credit score.
Step 2: Complete homebuyer education. All programs require completion of a HUD-approved homebuyer education course. Contact the City of Muskegon Community and Neighborhood Services department for local education resources.
Step 3: Contact a local housing partner. Reach out to the City of Muskegon Community and Neighborhood Services department for information about the city's homebuyer assistance program. Habitat for Humanity Northern Muskegon also offers homeownership opportunities for qualifying families.
Step 4: Get pre-approved for a mortgage. Find an MSHDA-approved lender at the MSHDA website for state programs. Your lender can also help coordinate city-level assistance.
Step 5: Find a home within program limits. The MSHDA MI Home Loan has a purchase price limit of $544,233. The city program requires the home to be within the City of Muskegon.
Step 6: Submit your application. Apply for city and state assistance through your lender and the City of Muskegon Community and Neighborhood Services. Allow time for processing and property inspections.
Frequently Asked Questions
How much down payment assistance can I get in Muskegon?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
Are there affordable homeownership programs in Muskegon?+−
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