What is the Detroit Down Payment Assistance Program (DPA)?

Written by Bonnie Pappas - Mortgage Loan Officer, Rochester Hills

The Detroit Down Payment Assistance Program (DPA) was created to help lower-income and middle-class Detroit residents transition from renting to owning property. Funded through the American Rescue Plan Act, this program will help up to 400 renters realize the American dream of homeownership.

Currently, homeownership is one of the best ways to develop generational wealth as property values continue to rise. Owning a home provides stability for both the residents and the city of Detroit, and homeownership means no more having to relocate because your landlord has increased your rent or wants to sell. Frequent moves can create a hardship on families if they have to find a new school district for their children or leave behind a community they love.  The goal of the DPA Program is to remove this instability so that people can feel secure in their future.

Detroit residents can receive up to $25,000 in assistance, and the money can be used for down payment and closing costs, prepaids, and principal reduction. The grant could also be paired with the Michigan State Housing Department (MSHDA) Down Payment Assistance for up to $10,000.

To receive this grant, applicants must meet the qualifications below:

• Must not have owned a home in the last 3 years.  If you lost a home in the city due to property tax foreclosure between 2010 and 2016 you can qualify for this grant, as well.

• The home purchased must be your primary residence for the next three years.

• Fall beneath the income limit based off family size.

  1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person
  $43,740	$59,160	$74,580	$90,000	$105,420	$120,840	$136,260	$151,680

• Must contribute a minimum down payment of $1,000 toward the home purchase.

• Show you have been a resident of Detroit for the last 12 months, through proof of utility bills or rent/lease agreements.  

• Take a HUD homebuyer education class. 

• Find a lender that participates in the program and get your pre-approval, find your home, and then apply for the program at the DPA.

It is important to note that the home purchased with the grant must be the homeowner’s principal residence for three years following the award or the grant must be repaid.

The Detroit DPA Program will boost Detroit residency and will help to open the door to homeownership for many people who otherwise would not have been able to achieve it.

Michigan First Mortgage is a proud partner of the Detroit Down Payment Assistance Program. Call us at 877.312.9033 to get started.