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Homebuyer Programs in Muskegon, MI (2026)

Population: 37,183 | Median home price: $170,000 | Est. closing costs: $3,500 - $5,000

Last updated April 10, 2026

Skyline of Muskegon, MI

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

City of Muskegon Homebuyer Assistance Program
Type:
Forgivable Loan
Amount:
Down payment assistance available
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 Northern Muskegon Homeownership Program
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

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