Plan your Michigan home purchase with clear financing information
Buying in Farmington Hills, Novi, Northville, or elsewhere in Oakland County? Start with a realistic budget and a lender who can explain your current options.
Can you use down payment assistance with an FHA loan in Michigan?
Eligible buyers may be able to combine an FHA mortgage with an approved assistance program. FHA financing and assistance approval are separate requirements. Ask a participating lender which combination fits your circumstances and whether funds are available before you rely on assistance in an offer.
FHA insures mortgages made by private lenders; it does not make your loan directly. HUD explains that FHA down payments can be as low as 3.5%. That minimum is not available to every applicant, and lender requirements can be stricter. Conventional financing does not universally require 20% down, so compare the actual options offered to you.
A 3.5% down payment on a $250,000 purchase is $8,750. That calculation does not include closing costs, prepaid items, reserves, or mortgage insurance, and it is not an estimate of your final cash to close. The CFPB’s FHA guide notes that mortgage insurance is required and recommends comparing total costs.
MSHDA MI 10K assistance: a current option to discuss
MSHDA’s MI 10K DPA program describes up to $10,000 in statewide assistance for eligible buyers, used with a MI Home Loan. It can help with the down payment, closing costs, and prepaid expenses. A MSHDA-approved lender handles the application.
| Topic | What MSHDA lists |
|---|---|
| Assistance | Up to $10,000; individual approval determines the amount. |
| Loan terms | Interest-free loan with no monthly payments; repayment is deferred. |
| Repayment events | Events include first-mortgage payoff, sale, refinance, or ending owner occupancy. |
| Education | A homebuyer education completion certificate is required. |
This is repayable assistance, not a promise of free money. Have the lender explain the written loan documents, required borrower contribution, income and purchase-price limits, and any effect on future refinancing.
What happened to the $25,000 first-generation pilot?
The former pilot had additional borrower and family homeownership criteria. Those historical rules do not establish eligibility for other programs. Its closure also does not mean you are automatically ineligible for all assistance. Use the current program’s requirements rather than older articles or social posts.
Five steps before you shop for an Oakland County home
- Write down your comfortable budget. Include utilities, maintenance, transportation, and the savings you want to retain after closing. A maximum loan approval is different from a comfortable payment.
- Speak with a participating lender. Ask for the exact program name, funding status, qualification requirements, and documents needed for every borrower. Do not send financial documents through a public comment or contact form.
- Compare the complete borrowing costs. Request written estimates for the options available to you, including the rate, fees, mortgage insurance, monthly payment, and cash to close.
- Complete the required education. Confirm the approved provider and format with your lender before paying for or booking a course. The former pilot’s education rules should not be assumed to apply to every program.
- Match the home search to the financing. Review property requirements, approval conditions, and timing before making an offer. Keep your lender informed when your plans change.
Questions to bring to your lender
- Which assistance program are you evaluating, and can you confirm funding availability?
- How much of my own money must I contribute, and what funds are acceptable?
- What must I repay when I sell, refinance, or move out?
- What happens if the appraisal, property condition, or closing date changes?
- Which conditions still need to be satisfied after pre-approval?
Michigan FHA and assistance questions
Is the $25,000 first-generation program taking applications?
No. At the October 29, 2026 review, MSHDA’s official notice says the pilot is closed and has no waitlist. Recheck the linked state page for future changes.
Does being a first-time buyer guarantee assistance?
No. A participating lender must evaluate the applicable program, all borrowers, the property, and available funding. Avoid treating a headline amount as an approval.
Who decides whether I qualify?
Your lender and the program administrator determine financing eligibility. Tom Gilliam can help you prepare your home search and coordinate the purchase process, but cannot approve a mortgage or reserve assistance funds.
Plan your next move with Tom Gilliam
Once you understand your financing, compare communities and homes against your priorities. Tom Gilliam with RE/MAX Classic helps Oakland County buyers organize their search, evaluate properties, and move from an offer toward closing.
Explore the Oakland County buyer guide or compare local communities.
Ready to organize your home search?
Discuss your goals, preferred communities, and purchase timeline with Tom.
Tom Gilliam | RE/MAX Classic | 29630 Orchard Lake Rd, Farmington Hills MI 48334 | ABR | SRES | SFR | RE/MAX Hall of Fame | Top 1% Oakland County | 24 Years Experience
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