MSHDA Step Forward Program

November 15th, 2018

Wow First Time home Buyer Grant  



    Step Forward Down Payment Assistance (DPA) is a federally-funded forgivable down payment assistance loan program offered in 61 eligible zip codes in 10 Michigan counties. The Step Forward Program has allocated $20 million to the Step Forward DPA program. Funds are limited and are available on a first-come, first-served basis. The amount of the assistance is $15,000 and can only be used in conjunction with a MSHDA MI Home Loan.

    This loan program will assist in neighborhood stabilization and promote homeownership in areas of the state that still reflect high rates of delinquencies and foreclosures, negative equity, bank-owned properties (REOs) and short sales.

    The Step Forward DPA can be used toward the down payment, closing costs, and prepaids/escrows on the purchase of a single-family principal residence. The balance of the $15,000 (if applicable) must be used to reduce the MSHDA MI Home Loan first mortgage principal balance.

  • Funds Available: $20 million

    Available Areas: 61 eligible zip codes

    Program Launch Date: Lenders may make new reservations beginning on or after October 8th, 2018.

    First Mortgage: Must be a MSHDA MI Home Loan FHA, VA, RD Guaranteed or conventional loan. MSHDA MI Home Loan guidelines apply. Borrowers must use a MSHDA approved lender

    Second Mortgage: Step Forward DPA, full $15,000 disbursement (MSHDA MI Home Loan Single Family DPA guidelines apply)

    Terms: 0% interest rate, no monthly payments, five-year term, forgiven 20% per year. The lien is discharged after the 5th year if the purchasers still own and occupy the property as their primary residence.

    Down Payment Assistance: $15,000 second mortgage is applied toward down payment, closing costs, prepaids/escrows and principal reduction of the MSHDA MI Home Loan first mortgage.

    Asset Limit: $10,000 in liquid cash assets (retirement accounts do not count toward asset limit)

    Income: MSHDA MI Home Loan income limits apply and are based on total household income. Income limits vary by county and the number of members in the household, with limits set between $67,300-$130,340. 

    Purchase Price: $224,500, consistent with MSHDA MI Home Loan statewide purchase price limit

    Credit Score: 640 minimum credit score; 660 minimum credit score on manufactured homes

    Homebuyer Education: A Homebuyer Education Certificate of Completion is required for each borrower and must be taken from a MSHDA HEP Housing Education Agency or a Michigan-based HUD Approved Agency.

    Requirement: Borrowers who have received a mortgage loan from any other Step Forward Michigan programs are not eligible for this program.

    Additional Documentation: Dodd Frank Certification must be signed by each borrower stating that they have not been convicted within the last 10 years of a mortgage or real estate related felony, larceny, theft, fraud, forgery, money laundering or tax evasion.


To see if you qualify visit our Home Page to apply!

Michigan First Time Home Buyer




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Michigan First Time Home Buyers is a team of brokers operating under Fagin Enterprises Inc. brokerage and is not a bank or mortgage lender.