For many first-time homebuyers, saving for a down payment can be one of the biggest obstacles to homeownership. To help bridge this gap, the Michigan State Housing Development Authority (MSHDA) has launched the First-Generation Down Payment Assistance Program, offering $25,000 in financial assistance to eligible buyers.
This program is designed to help individuals who may not have had the generational support of homeownership in their family. With only $8 million in total funding, eligible buyers should act quickly before the funds run out.
What Is the First-Generation Down Payment Assistance Program?
This state-funded program provides $25,000 in forgivable assistance to help first-time buyers cover their down payment and closing costs. This financial aid makes homeownership more accessible to individuals whose parents have not owned a home in recent years.
The goal is to increase generational wealth and homeownership opportunities for those who may not have had family support in navigating the homebuying process.
Who Qualifies for This Assistance?
To qualify for MSHDA’s First-Generation Down Payment Assistance Program, you must meet all of the following criteria:
The home must be your primary residence (not a second home or investment property).
You must not have owned a home in the last three years.
Your parents must not have owned a home in the last three years.
Additionally, one of these conditions must also apply:
Your parents have not owned a home in the last three years.
You have aged out of foster care.
You have been emancipated.
If you meet these qualifications, you could be eligible for $25,000 in assistance toward your home purchase!
How Do You Apply?
Applying for this program requires a few important steps:
1. Get Pre-Approved – Work with a Michigan-based mortgage lender (like our team at Great Lakes Mortgage) to confirm your eligibility and determine your homebuying budget.
2. Complete a Homebuyer Education Course – MSHDA requires that all buyers using this assistance complete an education course to better understand the responsibilities of homeownership.
3. Find Your Home and Make an Offer – Once approved, you can begin house hunting and use the assistance to cover your down payment and closing costs.
Why This Program Matters
Homeownership is a major financial milestone that builds stability and long-term wealth. However, first-generation homebuyers often face unique challenges, such as lack of guidance on the homebuying process or difficulty saving for upfront costs.
This program helps break that cycle by giving qualified buyers a financial boost — turning homeownership dreams into reality.
Act Now – Limited Funds Are Available!
With only $8 million in funding, this program is first-come, first-served. Once the funds are used, they’re gone! If you think you might qualify, now is the time to take action.
At Great Lakes Mortgage, we specialize in helping first-time buyers navigate programs like MSHDA’s First-Generation Down Payment Assistance. Let’s see if you qualify and take the first steps toward buying your dream home!