Owning a home offers stability, a sense of accomplishment and an opportunity to build wealth. In an effort to support those looking to own a home for the first time, Michigan offers several programs to aid in the process through the Michigan State Housing Development Authority (MSHDA).

The MI Home Loan program offers a “soft mortgage” to help make a down payment and pay closing costs. Through the MI Home Loan program, the state will make a $10,000, 0% interest loan to first-time homebuyers that use MSHDA certified lenders. You only owe back the money when you sell the home. Check to see if you qualify.
The second program is the Mortgage Credit Certificate. If you use a MSHDA lender and stay under the maximum purchase price of $224,500, the state will issue you a certificate to apply for a yearly federal tax credit of 20% of your mortgage interest, up to $2,000. This tax credit does not require you to itemize.