Yesterday, on 2/18/25, the Michigan State Housing Development Authority (MSHDA) announced the First-Generation Down Payment Assistance (DPA) program, a pilot initiative designed to make homeownership more accessible to individuals who are the first in their families to purchase a home. This program offers up to $25,000 in down payment assistance covering essential upfront costs such as down payments and closing costs. With an $8 million allocation from the state budget, the program is poised to support hundreds of families across Michigan in achieving the dream of homeownership.
Michigan homebuyers who are interested should contact a MSHDA approved lender as soon as possible as this program will only be available while funds last.
“With rents soaring, this program offers families a foot in the door and much-needed stability by helping them secure a home with a fixed monthly cost. This financial boost will allow first-generation homebuyers to invest in their futures, strengthen their communities, and build generational wealth.”, says Amy Hovey, MSHDA chief executive officer and executive director.
First Generation Buyer Eligibility
- Borrower has not had any ownership interest (sole or joint) in a property during the last three years preceding the note date.
- No parent of the borrower has owned a property in the last three years preceding the note date. Exceptions are made for individuals who have aged out of foster care or have become emancipated.
MSHDA Loan Requirements
- The property purchased must serve as the borrower’s primary residence.
- Borrower must complete homebuyer education course.
- Borrowers need to contribute a minimum of 1 percent of the sales price (may come from an approved gift source).
- Minimum credit score of 640 is required.
- Applicants must fall within MSHDA’s income limits, and the property’s sales price cannot exceed $224,500.
Contact MSHDA Approved Lender, Julie Krumholz from Superior National Bank
MSHDA’s First Generation down-payment assistance is only available while the allocated funds last, so interested borrowers are encouraged to contact a MSHDA approved lender as soon as possible.
Julie Krumholz is an MSHDA-approved lender with over 30 years of experience in the mortgage industry. She’s experienced nearly every facet of the mortgage industry, from processing, closing, loan origination, underwriting, QC auditing, and even co-owning a mortgage brokerage firm. Julie uses her wealth of experience to match homebuyers with the best mortgage program for their specific needs and helps streamline the homebuying process.
