Need help buying your first home? The Michigan State Housing Development Authority helps with two loan programs, plus a down payment assistance program.

If you haven't owned a home in the last three years, you can qualify as a first-time home buyer. That means that if you owned a home but lost it more than three years ago in the housing crash, you may be able to get a fresh start under these programs.

National first-time home buyer programs

These national loan programs appeal to many first-time home buyers. Offered by most lenders, the loans have low down payment or flexible credit requirements.

MSHDA highlights and eligibility requirements

The Michigan State Housing Development Authority offers mortgage programs for both first-time home buyers and repeat buyers. The mortgages feature fixed interest rates and low down payment requirements, and they can be combined with the authority's down payment assistance and mortgage tax credit programs.

Highlights

  • Alternative credit review is available for some borrowers who have no credit score.

  • The minimum down payment for a conventional loan is 3%, and down payment assistance is available.

  • Available to first-timers as well as repeat home buyers in certain economically disadvantaged target areas.

  • You have your choice of conventional, FHA, VA or USDA loans.

Eligibility

  • Available for credit scores as low as 640.

  • The home has to be your primary residence.

  • There are limits on sales price, income and overall debt-to-income ratio.

  • You must attend a home buyer education course to receive down payment assistance.

  • You have to contribute at least 1% of the loan amount, even with down payment assistance.

Summary: 2021 MSHDA first-time home buyer programs

  • MI Home loan with low down payment.

  • MI Home Loan Flex with low down payment for first-time home buyers and repeat buyers.

  • MSHDA Down Payment Assistance offering help for down payment and closing costs.

  • Mortgage Credit Certificate to provide an annual tax credit.

Start out on the Michigan State Housing Development Authority's "Homeownership" page, which has links to information about the state's loan programs, including mortgage credit certificates and home buyer education classes.

If you need down payment assistance, take a look at MSHDA's down payment assistance page.

The authority's website maintains a county-by-county list of loan officers who do MI Home Loans.