Buying a home is exciting, but saving for the down payment can feel overwhelming. The good news is that Grand Rapids and Michigan offer several programs to help you bridge the gap. Whether you are a first-time buyer, a first-generation homeowner, or simply looking for help with closing costs, this guide breaks down the most important options available.
City of Grand Rapids Homebuyer Assistance Fund (HAF)
The City of Grand Rapids offers a zero-interest loan of up to $7,500 to help with your down payment, closing costs, and prepaid expenses.
Key details:
Available for low to moderate income buyers.
You must complete a homebuyer education course.
The home must be your primary residence.
The loan is forgiven after five years if you continue living in the property.
This is a great option for buyers who want to stay rooted in Grand Rapids and need a boost to get started.
MSHDA MI 10K DPA Loan
The Michigan State Housing Development Authority (MSHDA) provides up to $10,000 in assistance through the MI 10K DPA program.
Highlights:
Zero percent interest and no monthly payments.
Requires at least a 1 percent buyer contribution.
Repayment is only due if you sell, refinance, or move out of the home.
This program is widely used by Michigan homebuyers and pairs well with the MSHDA MI Home Loan.
MSHDA First-Generation Down Payment Assistance
This pilot program supports buyers whose parents have never owned a home. It provides up to $25,000 in deferred loan assistance.
Key points:
Covers down payment, closing costs, and prepaid expenses.
Must be used with an MI Home Loan (FHA, USDA, or conventional).
Repayment is deferred until the property is sold, refinanced, or no longer your primary residence.
Currently on a waitlist due to high demand.
If you qualify, this is one of the most powerful tools available to first-time buyers in Michigan.
Mortgage Credit Certificate (MCC)
The MCC program gives eligible buyers a federal tax credit equal to 20 percent of the mortgage interest you pay each year, up to $2,000 annually.
This is not cash at closing, but the tax savings can make homeownership more affordable in the long run.
FHA Down Payment Grants
Some nonprofit organizations in Michigan provide grants equal to the required FHA down payment (3.5 percent of the purchase price). These grants do not require repayment and can be a smart choice for buyers using FHA financing.
Local Support: LINC UP Homeownership Program
Based in Grand Rapids, LINC UP provides free resources to help buyers prepare for ownership. Services include:
Homebuyer education courses.
Credit counseling.
Connections to lenders offering assistance programs.
Ongoing support throughout the buying process.
LINC UP is a great local partner if you want more than just financial support.
Why These Programs Matter in Grand Rapids
Grand Rapids is one of the fastest-growing markets in Michigan, and competition for homes can be tough. Down payment assistance can make the difference between renting longer and stepping into homeownership now. These programs also help buyers keep more money in savings, which is especially important when moving into a property that may need updates or repairs.
Ready to Buy Your First Home in Grand Rapids?
Down payment assistance can make homeownership closer than you think. Whether you are a first-time buyer, need help covering closing costs, or simply want to explore your options, having the right team matters.
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