First-time home buyer programs in Ann Arbor, Michigan — down payment assistance

Ann Arbor Down Payment Assistance

First-Time Home Buyer Programs & Down Payment Assistance in Ann Arbor, Michigan

An Ann Arbor, MI buyer using the first-time home buyer programs on this page can cover the FHA minimum down payment with assistance — a grant with nothing to repay — and, on the larger option, closing costs and prepaids as well, at credit floors that start in the low six hundreds and with no income limit on the second-lien options.

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Current Program Snapshot

Current down payment assistance guidelines, updated from one source.

The current program figures below are refreshed from Lendmire’s down payment assistance standards source at each visit, so the options shown for Ann Arbor, MI are the options in force.

Down Payment Help

Up to 5%

Of the purchase price

Measured on the purchase price or the appraised value, whichever is lower; the largest option covers the down payment and reaches closing costs, and the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.

Nothing to Repay

3.5%

Covers the FHA down payment, in whole or in part

This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.

Income Limit

None

On the forgivable and repayable options

Most of the options carry no income limit, so a higher-earning household qualifies the same as anyone else; only the nothing-to-repay option looks at income, at 140% of the area median, or at a qualifying category.

Credit

620

Credit score to start

The score that opens the nothing-to-repay option; the forgivable options start a step higher and the repayable options higher still. Two-borrower files may use a blended score on the second-lien options.

Assistance options offered in Michigan — how much, what it costs to carry, and the credit it takes
Option	Assistance	What you repay	Credit · mortgage · units
Grant-style assistance — nothing to repay	2% or 3.5% of the price	Nothing — released at closing	620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units
Forgivable second lien — three-year	3.5% of the price	Nothing after 36 on-time mortgage payments	640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Forgivable second lien — five-year	3.5% of the price	Nothing after 60 on-time mortgage payments	640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Repayable second lien — thirty-year amortization, ten-year balloon	3.5% or 5% of the price	Second lien, 30-year amortization, balloon in year 10	660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units
Closing-cost repayable second lien	3.5% or 5% of the price	Second lien, 30-year amortization, balloon in year 10	660+ · FHA 203(b) · 1–2 units
Refinance-cost second lien (repayable)	1% to 3.5% of the balance	Second lien, repaid	660+ · FHA 203(b) · 1–4 units

Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Michigan · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.

Program Notice

This page describes down payment assistance at the program level. The option for any file comes from the credit tier, the first lien, the property, and the eligibility category; the first lien’s approval, the appraisal, and full underwriting decide the actual terms, subject to lender program eligibility. Nothing here is a quote, a fee, or a commitment to lend; the calculator’s rate is a market benchmark you can edit and its payment an estimate. Lendmire is never the lender and is not affiliated with FHA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.

Ann Arbor Down Payment Assistance Guide

What down payment assistance is — and how the options differ.

The first-time home buyer programs work the same way in Ann Arbor, MI as anywhere in the footprint: a government first lien, an assistance option sized as a percentage of the price, and a set of rules about credit, units, and eligibility that decide which option fits.

For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Michigan.

01.

Assistance covers the FHA down payment

In Ann Arbor, MI, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.

02.

Four shapes: grant, forgivable, repayable, refinance

Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Ann Arbor, MI cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.

03.

Credit floors, mortgage programs, and unit counts

An Ann Arbor file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in Michigan.

04.

Eligibility without a first-time-buyer rule

Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.

The Core Calculation

Purchase price × the FHA minimum down payment = your down payment; assistance covers it, and the larger option covers closing costs too

The assistance is measured on the price, so the calculator starts there. It then applies the option you choose, your own cash, and an editable benchmark rate to show the loan, the mortgage insurance, and the payment.

Size My Down Payment Call (828) 256-2183

Ann Arbor Market Context

Where Ann Arbor’s first-time and moderate-income buyers shop — and how the assistance fits.

Census housing and income data describe who buys in Ann Arbor, MI and what it costs to get in; a lender reads those figures as context for the first lien, not as underwriting inputs.

Citywide figures provide general market context, not an appraisal or an income calculation. The renter share says how many households the program could serve; the median value says how far the minimum investment sits from a typical price; the two together describe where the program closes most files.

122,036Population (ACS 2020–2024)

$453,400Median owner-occupied home value (ACS 2020–2024)

54.5%Households that rent (ACS 2020–2024)

$82,212Median household income (ACS 2020–2024)

Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.

Ann Arbor Submarkets

Distinct Ann Arbor submarkets, distinct property rules.

Across Ann Arbor’s condominiums, townhomes, and older neighborhoods close to work, the same program produces different closings because prices, property types, and first liens differ block by block.

01.

New construction and infill

New construction in Ann Arbor works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien like any other purchase. The median owner-occupied home value in Ann Arbor runs near $453,400 on the latest Census estimate.

Builder timelines and appraisal

Market data: U.S. Census Bureau — Ann Arbor.

02.

Small multi-unit homes, owner-occupied

A buyer who lives in one unit of an Ann Arbor duplex can use the program on the whole building; the nothing-to-repay option, which reaches four units, makes a house-hacking purchase reachable with the minimum investment covered. Median household income in Ann Arbor sits near $82,212 on the latest Census estimate.

Live in one unit, rent the others

Market data: U.S. Census Bureau — Ann Arbor.

03.

Older neighborhoods and renovation loans

Renovation purchases in Ann Arbor qualify for the assistance on the price before repairs, which lets a buyer take on a home that needs work without also finding the minimum investment. Median gross rent in Ann Arbor is about $1,649 a month — the payment many renters already carry.

203(k) with the assistance attached

Market data: U.S. Census Bureau — Ann Arbor.

04.

Condominiums close to work

Buyers in Ann Arbor’s condominium buildings use the program to bridge the down payment, with the building’s approval status settled early so the closing is not held up. About 55% of Ann Arbor’s households rent — roughly 27,544 renter households, the pool the program exists for.

FHA project approval decides the file

Market data: U.S. Census Bureau — Ann Arbor.

05.

Manufactured homes on owned land

For Ann Arbor buyers looking at manufactured housing, the assistance is available on owned land, with single-width homes reaching only the option that accepts them. On a home at Ann Arbor’s median value, the FHA minimum investment comes to about $15,900 — the figure the assistance is built to cover.

Width and title decide the option

Market data: U.S. Census Bureau — Ann Arbor.

06.

Townhomes and attached homes

Attached homes and townhomes in Ann Arbor sit at price points where the minimum investment is smaller in dollars but no easier to save; the assistance closes that gap, and the association’s documents are reviewed with the file. Ann Arbor itself counts a population near 122K.

PUD review, lower price points

Market data: U.S. Census Bureau — Ann Arbor.

None of this is a valuation or an approval; it is the backdrop an Ann Arbor file is read against before the first lien and the option decide the numbers.

How Ann Arbor Buyers Use the Program

Four ways Ann Arbor buyers put down payment assistance to work.

How Ann Arbor buyers put the program to work depends on the first lien, the property, and what the help needs to cover; these four paths cover most files.

Renovation

Buy a home that needs work with a renovation mortgage

For an older Ann Arbor home, the renovation first lien and the assistance fit together, with the assistance measured on the purchase price rather than the repaired value.

First purchase

Buy a first home with the down payment covered

The most common Ann Arbor, MI file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.

Refinance

Cover the costs of an FHA refinance

An Ann Arbor homeowner refinancing an existing FHA loan can use the refinance-cost option, a repayable second lien sized on the balance, to cover closing costs and keep the first lien inside FHA limits.

Government mortgages

Pair the assistance with a USDA or HUD-184 mortgage

In USDA-eligible areas around Ann Arbor, the forgivable and repayable options pair with a no-down-payment first lien (the separate closing-cost option is FHA only); HUD-184 first liens pair the same way.

Assistance Sizer

Size the assistance on an Ann Arbor price before requesting a quote.

Enter an Ann Arbor purchase price, choose an assistance option offered in Michigan, and add any cash of your own. The calculator sizes the FHA minimum investment, applies the assistance to the down payment and closing costs, builds the FHA loan with its upfront and monthly mortgage insurance, and estimates the payment at an editable market benchmark rate — with housing and total ratios when you enter income.

Editable FHA scenario with assistance

Ann Arbor FHA payment with assistance

An Ann Arbor scenario to start from — adjust the price, the option, your own cash, the term, and the rate to see the assistance and the payment.

Purchase price

Assistance option

Your own cash toward the down payment (% of price)

Term

Rate (%) — editable benchmark

Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.

Property taxes (per year)

Homeowners insurance (per year)

Association dues (per month)

Gross monthly household income (optional)

Other monthly debt payments

—FHA minimum investment on this price.

—Annual mortgage insurance rate applied, and for how long.

Illustrative starting assumptions: a $455,000 price near Ann Arbor’s median owner-occupied home value, the strongest assistance option offered in Michigan applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Michigan (U.S. Census Bureau). Every field is editable.

Estimated total monthly housing payment

—

Principal and interest, FHA mortgage insurance, taxes, insurance and dues, on the total loan with the upfront premium financed.

—Total down payment (your cash plus assistance)

—Assistance applied to the down payment

—Assistance left toward closing costs and prepaids

—Your cash toward the down payment

—Base loan amount

—Upfront mortgage insurance premium, financed

—Total loan amount

—Principal and interest

—Monthly FHA mortgage insurance

—Taxes, insurance and dues

—Housing and total debt ratios (with income entered)

—Where the file lands

See my offer Call 828-256-2183

Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.

Down Payment Assistance vs. the Alternatives

Same buyer, three very different closings.

An Ann Arbor, MI buyer can reach the closing table several ways; the difference is where the minimum investment comes from and what it costs to carry afterward.

Structure Comparison

Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.

FHA with down payment assistance

Assistance that closes with the first lien: it covers the minimum investment; its shape is chosen by the credit tier and the first lien, with the eligibility category where the nothing-to-repay option is in play, and the second-lien options stay open to repeat buyers with no income limit.

FHA with your own minimum investment

Paying the minimum investment yourself keeps the closing simplest — no second lien, no category, no course; the trade is the months or years of saving that the assistance replaces. For the first lien itself, see Lendmire’s FHA loan program.

USDA or HUD-184 with assistance

Where the property is USDA-eligible or the buyer qualifies for HUD-184, the forgivable options and the ten-year repayable option carry the Ann Arbor file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.

Where each one fits

Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers — Lendmire places the Ann Arbor, MI file where it reads best.

Typical File Components

What to prepare for an Ann Arbor scenario review.

A typical starting file for a first purchase with assistance.

Purchase contractThe executed purchase contract with the price the assistance is measured on; on a renovation loan, the price before the repairs are made.

Property detailUnit count, condominium approval status, manufactured-home width and title, USDA eligibility, and any association documents on file.

Eligibility categoryNothing-to-repay option: proof of one qualifying category (occupation, first-time buyer, census tract, or area income; any one of them), plus the signed application.

Assets and reservesStatements showing the buyer’s own funds for anything the assistance does not cover, plus any reserves the first lien itself requires.

Seasoned fundsAny gift funds or personal savings used alongside the assistance, documented in the way the first lien requires those funds to be.

Credit reportA tri-merge report with a score for every borrower; the option’s floor and the first lien’s rules both apply, and a blended score may apply on the second-lien options.

This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.

Ann Arbor File Considerations

Local details that can change the loan.

These are the points a lender reads on an Ann Arbor assistance file before the option is confirmed; each one can move the structure.

Before You Move Forward

Use these checks to keep the Ann Arbor file clean and fundable.

Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; an Ann Arbor file that clears these reads cleanly.

Know the option: choose by cost to carry first, amount second.
Confirm the category: identify the category that opens the nothing-to-repay option.
Match the first lien: check the price against the county loan limit.

The option decides what you owe afterward

The same minimum investment can be covered three ways on a purchase in Ann Arbor, MI, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.

ii.

The eligibility category for the nothing-to-repay option

The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.

iii.

The mortgage and the county loan limit

An Ann Arbor buyer near the county loan limit should settle the first lien’s size first; a high-balance first lien narrows the options to the repayable ones, and the choice of USDA or HUD-184 narrows them further.

iv.

Blended scores for two-borrower files

On the second-lien options, two occupying borrowers can qualify on the average of their representative scores when the higher earner has the higher score; the loan must carry an automated approval, and every borrower still needs a score.

The balloon on the repayable option

The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.

A Clear Process

From an Ann Arbor pre-approval to keys with the assistance in place.

The path from an Ann Arbor pre-approval to keys with the assistance in place runs through the option first and the paperwork second.

Pick the option

Every Ann Arbor file starts with the option and the first lien; the category, the homebuyer education course and the property rules are then settled around them, in that order.

ii.

Get the mortgage approved

Lendmire packages the Ann Arbor file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.

iii.

Clear the property

The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.

iv.

Close both loans together

Final underwriting reads the whole Ann Arbor, MI file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.

Why Lendmire

A brokerage that pairs the assistance to the loan.

Down payment assistance is where a generalist stumbles: the options differ by first lien, by credit tier, by unit count, and by state, and the wholesale programs that carry them competently are a short list.

The option, matched to the buyer

An Ann Arbor scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.

ii.

The mortgage, matched to the property

An Ann Arbor file is matched to the first-lien program that carries the property — FHA everywhere, USDA or HUD-184 where they fit — and the assistance option follows that choice.

iii.

The right wholesale program

An Ann Arbor file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.

Client Experiences

Trusted by first-time buyers & families alike.

Verified Google Reviews

    
 
 
          Joseph Edwards 
 
 
 
 Trustindex verifies that the original source of the review is Google. Highly recommend, Cori was awesome to work with and had great communication. She was very helpful and got us through everything to close.
  
 
         K Star Real Estate LLC 
 
 
 
 Trustindex verifies that the original source of the review is Google. Cori on the Lendmire team was phenomenal! She was two steps ahead through the entire process of purchasing an investment property.  She was solving problems before anyone knew there could have been a problem.  Great communication,  great availability,  all around a great person to work with.  She is the reason our deal closed.  We look forward to working with her again in the very near future!
  
 
         Tristen Mosley 
 
 
 
 Trustindex verifies that the original source of the review is Google. Alayna Pack is very knowledgeable, helpful, communicative, and transparent. Highly recommend.
  
 
         J Mills 
 
 
 
 Trustindex verifies that the original source of the review is Google. Leigh is absolutely the best! Professional yet personable, diligent, and incredibly responsive. She was with us throughout the process and helped us secure a competitive rate. Leigh went above and beyond to make sure all of our questions were answered, and offered deep explanations for questions that arose. We felt supported through the entire process and trust her expertise completely. 5 stars!
  
 
         Tyjuana Atkinson 
 
 
 
 Trustindex verifies that the original source of the review is Google. Awesome experience!!!!!!! Leigh had our best interest at heart from beginning to the end.
  
 
         Anna Hernandez 
 
 
 
 Trustindex verifies that the original source of the review is Google. Curt Galbraith was a Great Loan Originator and goes above and beyond for his clients, working with him on this transaction was so easy. I would recommend him for any Buyers looking to Buyer or Refinance. Great Service all around
  
 
         RustynKelli Shelton 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brenda is absolutely one of the most professional hardworking lenders we have ever dealt with; she’s helped clients of ours and now us personally. Her communication is top notch, you never feel like you’re forgotten or left to figure things out on your own, great to answer questions and explain each step. Definitely recommend Brenda to walk along beside you in your purchase process!
  
 
         Isaac Alonzo 
 
 
 
 Trustindex verifies that the original source of the review is Google. As a first time home buyer Curt Galbraith was a wonderful man, he explained everything i had questions about and took time out of his day to meet up late at nights after my night shift, to explain things to me .Over all  Curt was really helpful all through closing and always there when you needed him. Thank you so much Curt for helping me through out the whole process.
  
 
         Jason Fleck 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brenda, Samantha and the Lendmire team were absolutely fantastic to work with. We had to jump through some major hurdles to get this home done, which most lenders would have gave up, they kept pushing to get this home done for us. I would absolutely recommend Brenda and team to anybody. Thank you so much for your commitment, communication, perseverance through the whole process.

Jason & Brooke

Questions Ann Arbor Buyers Ask

Ann Arbor down payment assistance FAQs

Plain answers to the questions Ann Arbor buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.

Do I have to be a first-time homebuyer?

No option requires it. An Ann Arbor buyer who has owned before qualifies for the second-lien options on credit, mortgage, and property alone, and for the nothing-to-repay option through any of the other categories.

Is there an income limit?

An Ann Arbor buyer above the area income limit still reaches the nothing-to-repay option through an occupation, a first purchase, or the tract, and reaches the second-lien options regardless of income.

What first-time home buyer programs are available in Ann Arbor?

Assistance measured as a percentage of the price, in shapes that differ by what you owe afterward: nothing, nothing if the mortgage stays current, or a second loan with a balloon. Credit, the mortgage, the property, and the eligibility category decide which fits.

Do I have to pay the assistance back?

Where the nothing-to-repay option is offered, nothing at all — no lien, no payment, no interest. The forgivable second liens are also free to carry: no payment and no interest, and they disappear once you have made the on-time mortgage payments the program asks for. Only the repayable option comes with a payment.

What credit score do I need?

An Ann Arbor buyer’s credit tier decides which options are open — the options table on this page shows the floor for every option offered in Michigan.

Can the assistance cover closing costs too?

Yes, on the larger repayable option, which covers the minimum investment and a further share of the price for closing costs and prepaid items, including costs paid outside closing. The nothing-to-repay and forgivable options cover the minimum investment only.

Is there an option for refinancing?

Yes, a refinance-cost option: a repayable second lien sized as a share of the balance on an existing FHA loan, covering closing costs and keeping the first lien inside FHA leverage limits. It is not a streamline, and it cannot refinance a loan that already carries assistance.

Can I buy a duplex or a fourplex with assistance?

Yes, if you live in one of the units. The nothing-to-repay option reaches four units; the purchase second-lien options stop at two; the refinance-cost option reaches four with one unit owner-occupied.

What property types are eligible?

Single-family homes, FHA-approved condominiums, townhomes and planned developments, owner-occupied two-to-four-unit homes within each option’s limit, and manufactured homes on owned land — single-width on the nothing-to-repay option, double-width on the second-lien options. Unique property types are outside the second-lien options.

Can I combine this with another assistance program?

One option, one first lien, one closing — no combination with other assistance.

Get Started

Place your Ann Arbor purchase on the right option today.

Request a scenario review with the price and the first lien in mind; Lendmire answers with the option, the floor, and what the file will need.

See my offer Size My Down Payment

Continue Exploring

This guide covers Ann Arbor — for the statewide options, categories, and property rules, see Down Payment Assistance in Michigan, part of Lendmire’s down payment assistance program.

Nearby markets in Michigan: Westland · Novi · Livonia · Dearborn Heights · Farmington Hills · Taylor · Dearborn · Southfield

Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans