Current down payment assistance guidelines, updated from one source.
One source feeds every down payment assistance page Lendmire publishes; the Bay City, MI figures below refresh when the program sheets are updated.
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.
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.
On the forgivable and repayable options
The forgivable and repayable options have no income limit at all — one of the biggest advantages of this program. Only the nothing-to-repay option asks for income at or below 140% of the area median, or a qualifying category.
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.
| 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.
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.
What down payment assistance is — and how the options differ.
First-time home buyer programs are not one program; they are a family of down payment assistance options paired with a government-backed first lien, and the right one for a Bay City, MI buyer depends on credit, the first lien, the property, and whether the help needs to reach closing costs.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Michigan.
Assistance covers the FHA down payment
In Bay City, 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.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Bay City, 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.
Credit floors, mortgage programs, and unit counts
A Bay City 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.
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 calculator below runs this math on a price you enter. Choose an assistance option offered in Michigan and add any cash of your own; it sizes the minimum investment, the assistance, what is left for closing costs, the FHA loan with its mortgage insurance, and the payment at an editable market benchmark rate.
Where Bay City’s first-time and moderate-income buyers shop — and how the assistance fits.
The share of Bay City, MI households that rent, the median home value, and the median household income together sketch the gap the assistance closes for a first purchase.
Read the figures as backdrop. In most markets, the renter households are the pool the program exists for: qualified for a payment close to their rent, short the cash to close; the assistance is the bridge from one to the other.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Bay City submarkets, distinct property rules.
Where a Bay City home sits changes which option can attach and what the property review asks; the submarkets below are the map most assistance files are read against.
Condominiums close to work
Buyers in Bay City’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. On a home at Bay City’s median value, the FHA minimum investment comes to about $3,400 — the figure the assistance is built to cover.
Manufactured homes on owned land
Manufactured housing on owned land near Bay City is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median household income in Bay City sits near $49,420 on the latest Census estimate.
Small multi-unit homes, owner-occupied
A buyer who lives in one unit of a Bay City 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. Bay City itself counts a population near 32K.
New construction and infill
New construction in Bay City 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. About 30% of Bay City’s households rent — roughly 4,392 renter households, the pool the program exists for.
Townhomes and attached homes
In Bay City, a townhome in a planned development pairs cleanly with the program; the association’s rules and dues are read alongside the first lien, and the assistance covers the down payment. The median owner-occupied home value in Bay City runs near $97,600 on the latest Census estimate.
Older neighborhoods and renovation loans
The older streets of Bay City are full of homes that need work, and the assistance pairs with a renovation first lien: the assistance is figured on the purchase price, while the loan itself covers price plus repairs. Median gross rent in Bay City is about $766 a month — the payment many renters already carry.
None of this is a valuation or an approval; it is the backdrop a Bay City file is read against before the first lien and the option decide the numbers.
Four ways Bay City buyers put down payment assistance to work.
How Bay City 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.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Bay City, 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.
Cover closing costs too on the larger option
A Bay City buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Buy a small multi-unit home and live in one unit
An owner-occupied building of up to four units in Bay City qualifies on the nothing-to-repay option, which reaches four units, and the buyer lives in one unit while the assistance covers the minimum investment on the whole building.
Buy a first home with the down payment covered
A Bay City buyer with the income for the payment but not the cash to close uses the assistance to cover the FHA minimum investment, a grant with nothing to repay, and keeps savings for the move.
Size the assistance on a Bay City price before requesting a quote.
This tool applies the program to a Bay City scenario: the price sets the minimum investment, the option and your cash set the down payment, and the FHA loan, mortgage insurance, and payment follow at the benchmark rate shown. Every field is editable; the rate is a market reference, not a quote.
Bay City FHA payment with assistance
Seeded from Bay City’s home values; every field is editable, and the estimate updates as you change the price, the option, your cash, or the rate.
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.
Illustrative starting assumptions: a $150,000 price near Bay City’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.
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.
Same buyer, three very different closings.
Same Bay City buyer, three closings: assistance on an FHA loan, the buyer’s own minimum investment, or assistance on a USDA or HUD-184 loan.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Bay City buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Bay City, MI buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
USDA and HUD-184 first liens pair with the forgivable options and the ten-year repayable option on a Bay City, MI file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
If the payment fits but the cash to close does not, down payment assistance is the structure; if the cash is there, the plain purchase; if the property is USDA-eligible, the USDA first lien with assistance for costs.
What to prepare for a Bay City scenario review.
A typical starting file for a first purchase with assistance.
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.
Local details that can change the loan.
A down payment assistance file in Bay City, MI is won or lost on details a plain purchase never meets: the eligibility category, the forgiveness clock, the balloon on the repayable option, the county loan limit, the property type.
Use these checks to keep the Bay City file clean and fundable.
Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; a Bay City file that clears these reads cleanly.
- Know the option: confirm the option is offered in the state.
- Confirm the category: remember that the second-lien options need no category and carry no income limit.
- Handle small repairs: finish and inspect the work inside the window.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Bay City, 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.
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.
Escrow holdbacks for minor repairs
A Bay City home with a small repair list does not have to wait for the work before closing; the escrow holdback carries it, within the program’s cap and timeline, with an inspection when the work is done.
Homebuyer education on the nothing-to-repay option
The nothing-to-repay option requires a HUD-approved homebuyer education or pre-purchase counseling course, online or in person; the buyer pays for it up front and the cost is credited back at closing. The second-lien options do not require it.
No stacking with other assistance
No option may be combined with another down payment assistance program in Bay City, MI, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
From a Bay City pre-approval to keys with the assistance in place.
The path from a Bay City pre-approval to keys with the assistance in place runs through the option first and the paperwork second.
Pick the option
Lendmire reads the Bay City scenario against the options offered in Michigan: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; a Bay City buyer’s income, credit, and reserves are read the way the first lien requires.
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.
Close both loans together
The first lien and the assistance close at the same table — the assistance as a grant released at closing where offered, or as a second lien with its own loan number — and the Bay City buyer receives keys with the minimum investment covered.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Bay City buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.
The option, matched to the buyer
The nothing-to-repay option where it fits, the forgivable options where it does not, the repayable option where closing costs are the hurdle — chosen for the Bay City, MI buyer, not by default.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Bay City property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Bay City, MI file where its credit, its first lien, and its property read best, subject to lender program eligibility.
Trusted by first-time buyers & families alike.
Bay City down payment assistance FAQs
Plain answers to the questions Bay City 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?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
Only on the nothing-to-repay option, and only when no other category applies: household income at or below the area-median-income ceiling in the snapshot, measured where the property sits. The forgivable and repayable second-lien options carry no income limit beyond the mortgage’s own rules.
What first-time home buyer programs are available in Bay City?
A Bay City buyer can cover the FHA minimum investment through a nothing-to-repay option where offered, a forgivable second lien, or a repayable second lien that reaches closing costs; the calculator on this page sizes each one on a price you enter.
Do I have to pay the assistance back?
It depends on the shape a Bay City, MI buyer takes. Two carry nothing to repay: the nothing-to-repay option where it is offered, and the forgivable second liens, released after the on-time payment period. The repayable options are loans, paid back with interest and a balloon.
What credit score do I need?
Lower than most buyers expect: the entry floor for a Bay City buyer sits in the low six hundreds, with the second-lien options a step or two higher. Two-borrower files may qualify on a blended score on the second lien when the higher earner has the higher score.
Can I use the assistance on a second home or a rental?
The assistance is for the home you live in; rentals and second homes are financed other ways.
Do I need a homebuyer education course?
On the nothing-to-repay option, yes — a HUD-approved course, online or in person, with the cost credited back at closing. The second-lien options do not require it, though the course is worth taking on any first purchase.
Which mortgages can the assistance be used with?
Government first liens only: FHA for every option, USDA and HUD-184 for the forgivable and repayable second liens (the closing-cost repayable option, the one that also reaches prepaid items, is FHA only).
What is the rate on the mortgage and on the assistance?
A scenario review produces the actual terms; the calculator here shows an estimate at a benchmark rate you can change, with the assistance sized on the price you enter.
Can I buy a duplex or a fourplex with assistance?
Two units on the second-lien options, up to four on the nothing-to-repay option, always with the buyer living in one of them.
From a pre-approval to keys — with the assistance in place.
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.
This guide covers Bay City — 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: Saginaw · Midland · Flint · East Lansing · Lansing · Pontiac · Rochester Hills · Troy
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans