The short version
MSHDA’s MI Home Loan and MI 10K down payment loan are Michigan’s main state programs, offered through MSHDA-approved lenders.
Federal programs like FHA, VA and USDA loans don’t require you to be a first-time buyer.
Most assistance comes with income limits, price limits and a homebuyer education class.
Buying your first home around Lansing usually means comparing a few programs, not finding a single one. Some lower the cash you need at closing. Others lower the down payment itself. Here’s how the main options work in 2026 and what to ask before you count on any of them.
Who counts as a first-time buyer
For MSHDA’s programs, a first-time buyer is someone who hasn’t owned a home in the previous three years, so a past homeowner can qualify again. Repeat buyers can also use the MI Home Loan in targeted areas. Many federal loan programs don’t ask about first-time status at all.
MSHDA’s MI Home Loan
The MI Home Loan is a mortgage program from the Michigan State Housing Development Authority. As of October 2026, MSHDA lists a minimum 640 credit score, household income limits that vary by family size and county, a statewide sales price limit of $566,355 for loans after June 1, 2026, and a required homebuyer education class. Buyers apply through a MSHDA-approved lender.
MI 10K down payment assistance
Paired with the MI Home Loan, the MI 10K DPA loan provides up to $10,000 toward the down payment, closing costs and prepaid expenses. It’s interest-free with no monthly payments, but it is a loan. Repayment is due when you pay off the first mortgage, sell or refinance, or stop living in the home. Our Michigan down payment assistance guide covers the questions to ask.
Low down payment loans for any buyer
FHA loans: 3.5% down with a credit score of 580 or higher, plus mortgage insurance.
USDA loans: no down payment for eligible homes in rural-designated areas, with household income limits. Some communities around Greater Lansing may qualify, so check the address.
VA loans: usually no down payment for eligible veterans, service members and surviving spouses.
Conventional loans: some allow as little as 3% down for eligible first-time buyers, with mortgage insurance until you build enough equity.
Local help around Lansing
Cities, counties and nonprofits in the Lansing area have offered their own down payment help at times, often with income limits, price caps and an education requirement. Funding opens and closes, so check what’s available when you’re ready to buy and ask how it combines with your mortgage.
Take a homebuyer education class early
Many assistance programs require a homebuyer education certificate, and the class is useful even when it isn’t required. HUD-approved housing counseling agencies offer classes in person and online. Finishing it early keeps it from holding up your closing.
Compare the full cost, not just the help
Assistance lowers what you bring to closing, but it can come with repayment conditions or a different rate. Line up the cash due at closing, the monthly payment and what you’d owe later for each option. The mortgage calculator and our preapproval checklist are good places to start.
Talk it through with a local lender
Tell us where you’re looking, what you’ve saved and your timeline. Ask us about MSHDA’s MI Home Loan and MI 10K DPA, along with the other down payment assistance options we offer, and we’ll compare the loans that fit.
Official resources
Educational information, not an offer to lend. Program rules, costs and availability can change. Ask a loan officer about current terms for your situation.
