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Homebuyer Programs in Sterling Heights, MI (2026)

Population: 133,744 | Median home price: $275,000 | Est. closing costs: $5,500 - $8,500

Last updated April 10, 2026

Skyline of Sterling Heights, MI

Sterling Heights is Michigan's fourth-largest city, located in Macomb County in the northern suburbs of Detroit, with a median home price of around $275,000. While Sterling Heights does not currently offer a city-funded down payment assistance program, buyers here can take advantage of several strong state and county programs. The MSHDA MI 10K DPA Loan provides up to $10,000 in zero-interest down payment assistance statewide. The HomeBoost program offers grants of up to $15,000 for qualifying minority first-time homebuyers. Families with children can also build savings toward homeownership through the Macomb Community Action IDA program, which matches every dollar saved 3:1, turning $1,000 in savings into $4,000 for a down payment.

County Programs in Macomb County

Macomb Community Action IDA Homebuyer Program
Type:
Grant
Amount:
Up to $4,000 ($1,000 savings matched 3:1)
First-time only:
No

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

How to Apply

Step 1:

Check your eligibility. The MSHDA MI 10K DPA has income limits that vary by county. For Macomb County, the limit is $95,900 for 1-2 person households and $110,285 for 3+ person households. A minimum credit score of 640 is required. The HomeBoost program requires income at or below 120% AMI.

Step 2:

Complete homebuyer education. All programs require a homebuyer education course. MSU Extension Macomb Office at (586) 469-7614 offers free HUD-approved homebuyer education workshops and one-on-one counseling sessions. 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 who will process both the first mortgage and the DPA together. Use MSHDA's lender search portal to find approved lenders in Macomb County.

Step 4:

Explore the Macomb Community Action IDA program. If you have a child under 18, contact Christina Stepowski at (586) 469-7378 to enroll in the matched savings program. Save $20 or more per month and receive a 3

Step 5:

Find a home within program limits. The MSHDA program has a statewide purchase price limit of $544,233. Look for properties in Sterling Heights that meet your budget and program requirements.

Step 6:

Submit your applications. Your MSHDA-approved lender will process both the MI Home Loan first mortgage and the MI 10K DPA second mortgage together. You must contribute at least 1% of the purchase price and cannot have more than $7,500 in liquid assets (excluding retirement accounts).

Frequently Asked Questions

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