(The Center Square) – The First-Generation Down Payment Assistance pilot program has been launched this week by the Michigan State Housing Development Authority.
Costing $8 million, the program is targeted at “first-generation homebuyers,” which it defines as anyone who has not owned a home in the past three years. Eligible applicants would receive a $25,000 down payment assistance deferred loan.
“Homeownership is an important pathway to economic vitality and mobility for our state and its residents, but too many first-time buyers face financial barriers that put it out of reach,” said Amy Hovey, chief executive officer and executive director of the housing authority, in a press release. “With rents soaring, this program offers families a foot in the door and much-needed stability by helping them secure a home with a fixed monthly cost.”
Democrats have supported the program, which the state expects to assist 320 households statewide via state budget appropriations.
“It’s getting easier for first-time homebuyers to make that dream come true, thanks to the leadership of Gretchen Whitmer and Democrats in Lansing,” said the Michigan Democratic Party in a statement. “While Republicans are waging war on our communities, Democrats are lifting Michiganders up.”
Not everyone is happy with the program, with some calling it “discrimination” and “unconstitutional” for excluding other Michigan residents.
The state argued the program is part of its “ongoing commitment to expanding affordable housing opportunities in Michigan” and is a “key step in breaking down financial barriers and expanding access to homeownership for more Michiganders.”
To qualify for the program, the applicant must also have one of the following:
• No parent of the borrower has owned a property in the last three years.
• The borrower has aged out of foster care.
• The borrower has become emancipated.
The home purchased must cost less than $224,500 and the income of the borrower must “fall within the household income limits set by MSHDA.”
According to a May 2024 report, eligible income limits to qualify for a down payment assistance loan range from $91,200 to $174,720, depending on factors including the county the home is located in and household size.
