Current down payment assistance guidelines, updated from one source.
One source feeds every down payment assistance page Lendmire publishes; the Dearborn Heights, MI figures below refresh when the program sheets are updated.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while 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
The FHA minimum down payment is 3.5%, and this option covers it in whole or, on its lower tier, in part with nothing to pay back — no lien, no payment, no interest — for buyers at or below the area income limit or in a qualifying category.
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 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.
Down payment assistance options are consumer mortgage programs arranged through select wholesale lenders, licensed in sixteen states, paired with FHA, USDA, or HUD-184 first liens. Assistance is stated as a percentage of price or value, never as a dollar figure a specific borrower would receive; the forgivable and repayable options are second liens with their own disclosures. Eligibility depends on the first lien’s approval, the option’s rules, the property, and full underwriting, subject to lender program eligibility. The calculator’s rate is an editable market benchmark, not a quote, and its payment is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is a mortgage broker and never the lender, and is not affiliated with or acting on behalf of FHA, VA, 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 Dearborn Heights, 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
Every purchase option for a Dearborn Heights buyer is sized on the price (or the lesser of price and value), not on a fixed sum: the smaller options cover the minimum investment, in whole or, on the lowest tier, in part, and the larger repayable option covers it and reaches closing costs and prepaid items too; the refinance option is sized on the balance.
Four shapes: grant, forgivable, repayable, refinance
The assistance comes as a grant where it is offered, as a forgivable second lien, or as a repayable second lien, with a refinance-cost version for an existing FHA loan; each pairs with the first lien differently, and the options table on this page shows what is offered in Michigan.
Credit floors, mortgage programs, and unit counts
Two-borrower files can qualify on a blended score on the second-lien options when the higher earner has the higher score and an automated approval is in hand; every borrower still needs a score of their own, and the first lien and the unit count place the file as the options table shows.
Eligibility without a first-time-buyer rule
No option requires a first-time buyer. The nothing-to-repay option asks for one qualifying category — income at or below the area limit, a community-service occupation, a first purchase, or an underserved tract — and a homebuyer education course; the second-lien options ask for neither.
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.
Where Dearborn Heights’ first-time and moderate-income buyers shop — and how the assistance fits.
Census housing and income data describe who buys in Dearborn Heights, 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. Value and income rarely move at the same pace; the market figures below show what a Dearborn Heights home costs and how many households rent, and the calculator shows what that means for the minimum investment.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Dearborn Heights submarkets, distinct property rules.
Dearborn Heights’ entry-level stock is not one market. Each submarket below carries its own price points, its own property rules, and its own fit with the assistance options.
Homes that need work
In Dearborn Heights, a buyer can take on a fixer with the assistance attached to a limited renovation loan or, on the nothing-to-repay option, a standard one, so the down payment and the repair budget are settled in one transaction. Median household income in Dearborn Heights sits near $60,391 on the latest Census estimate.
New construction
New construction in and around Dearborn Heights works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien. On a home at Dearborn Heights’ median value, the FHA minimum investment comes to about $6,500 — the figure the assistance is built to cover.
Small multi-unit homes, owner-occupied
A buyer who lives in one unit of a Dearborn Heights duplex can use the program on the whole building; the nothing-to-repay option, which reaches four units, makes the purchase reachable with the minimum investment covered. Median gross rent in Dearborn Heights is about $1,331 a month — the payment many renters already carry.
Manufactured homes on owned land
Manufactured housing on owned land is common around Dearborn Heights, and the program accepts it: the nothing-to-repay option takes single-width homes, the second-lien options double-width only, and the land must be owned rather than leased. Dearborn Heights itself counts a population near 62K.
Established neighborhoods
In Dearborn Heights, a first home in an older neighborhood pairs with the program on an FHA first lien, and the assistance covers the down payment the buyer would otherwise have to save. About 30% of Dearborn Heights’ households rent — roughly 6,572 renter households, the pool the program exists for.
USDA-eligible areas
Where a property near Dearborn Heights sits in a USDA-eligible area, the USDA first lien and the forgivable or ten-year repayable options fit together, keeping cash to close near zero for buyers who qualify. The median owner-occupied home value in Dearborn Heights runs near $185,100 on the latest Census estimate.
None of this is a valuation or an approval; it is the backdrop a Dearborn Heights file is read against before the first lien and the option decide the numbers.
Four ways Dearborn Heights buyers put down payment assistance to work.
How Dearborn Heights 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.
Cover closing costs too on the larger option
The larger option exists for the Dearborn Heights, MI closing where the down payment is only half the problem: it carries the minimum investment and a further share for costs.
Pair the assistance with a USDA or HUD-184 mortgage
Where the first lien is USDA or HUD-184, the second-lien assistance options carry the file in Dearborn Heights, forgivable or repayable by the buyer’s choice and credit profile.
Buy a first home with the down payment covered
The most common Dearborn Heights, MI file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Buy a small multi-unit home and live in one unit
For a Dearborn Heights buyer choosing a small multi-unit home, the assistance attaches to the first lien on the building, up to the option’s unit limit, with the buyer living in one of the units.
Size the assistance on a Dearborn Heights price before requesting a quote.
Run a Dearborn Heights price through the options before you request a quote: the minimum investment, the assistance applied, what is left for closing costs, the mortgage insurance tier, and the estimated payment. Enter income to see the ratios a lender reads.
Dearborn Heights FHA payment with assistance
Illustrative Dearborn Heights inputs; the calculator recalculates on every change.
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 $185,000 price near Dearborn Heights’ 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.
A Dearborn Heights, 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.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Dearborn Heights 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 Dearborn Heights, 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 Dearborn Heights, 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 Dearborn Heights scenario review.
What a down payment assistance review usually starts with.
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.
Beyond the credit tier and the first lien, a handful of details decide which option a Dearborn Heights buyer can use — or whether the assistance attaches at all.
Use these checks to keep the Dearborn Heights file clean and fundable.
A clean Dearborn Heights file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: read the second lien as the loan it is.
- Confirm the category: identify the category that opens the nothing-to-repay option.
- Understand the clock: expect no resubordination and no additional liens.
The option decides what you owe afterward
Choose the shape before the amount: the forgivable options cover the minimum investment and cost nothing to carry when the first lien stays current; the repayable option covers more and is repaid; where it is offered, a nothing-to-repay option released at closing costs nothing at all.
The eligibility category for the nothing-to-repay option
For a Dearborn Heights buyer, the category question is worth answering early: a buyer inside the income limit or in a qualifying occupation reaches the nothing-to-repay option; a buyer outside every category uses the forgivable or repayable second liens, which carry no income limit.
The forgiveness clock on the forgivable options
For a Dearborn Heights, MI buyer, the forgivable options cost nothing to carry as long as the first lien stays current through the period; they are not resubordinated, not assumed, and no additional lien can be added behind them.
No stacking with other assistance
No option may be combined with another down payment assistance program in Dearborn Heights, 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.
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.
From a Dearborn Heights pre-approval to keys with the assistance in place.
The process for a Dearborn Heights, MI purchase with assistance is deliberate, because the details around the assistance are what stall closings.
Pick the option
Lendmire reads the Dearborn Heights 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
Lendmire packages the Dearborn Heights 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.
Clear the property
The property side of a Dearborn Heights, MI file is where the option can change: unit count, project approval, and the loan limit are confirmed before the closing is scheduled.
Close both loans together
Final underwriting reads the whole Dearborn Heights, 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.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Dearborn Heights 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
A Dearborn Heights 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.
The mortgage, matched to the property
A Dearborn Heights 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.
The right wholesale program
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Dearborn Heights, 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.
Dearborn Heights down payment assistance FAQs
Straight answers for Dearborn Heights buyers weighing down payment assistance; the mortgage approval and the option’s rules decide every actual figure.
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 Dearborn Heights?
Down payment help in four shapes for a Dearborn Heights, MI buyer: money with nothing to repay, a forgivable second lien that costs nothing while the mortgage stays current, a repayable second lien that reaches closing costs, and a refinance-cost option for an existing FHA loan. The forgivable and ten-year repayable shapes pair with an FHA, USDA, or HUD-184 mortgage; the rest pair with FHA only.
Do I have to pay the assistance back?
A nothing-to-repay option is released at closing with no lien and no payment. The forgivable second liens also cost nothing — no interest, no payment — as long as the mortgage stays current through the forgiveness period, and they pair with USDA and HUD-184 mortgages as well as FHA. The repayable options are loans, with a monthly payment and a balloon.
What credit score do I need?
Scores in the low six hundreds open the first option, and each step up in score opens more of them. The mortgage program has its own rules too, so the credit score, the mortgage, and the property are read together before the option is named.
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.
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).
Can I combine this with another assistance program?
No. One assistance program per Dearborn Heights, MI file. The nothing-to-repay and forgivable options also do not combine with a high-balance first lien, and the nothing-to-repay option not with certain FHA specialty programs.
Can I use the assistance on a second home or a rental?
No. Every option is for an owner-occupied primary residence; on the forgivable and repayable options the home must stay the primary residence for the term of the second lien.
Can the assistance cover closing costs too?
The larger repayable option reaches closing costs; the others stop at the down payment. A Dearborn Heights buyer short on both uses the larger option.
Ready to size the assistance on a Dearborn Heights home? Start with the price.
No credit pull, no commitment: an initial review places your Dearborn Heights purchase on the right option and tells you what to gather.
This guide covers Dearborn Heights — 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: Dearborn · Westland · Livonia · Taylor · Southfield · Detroit · Farmington Hills · Royal Oak
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans