Detroit DPA Professionals Guide

DPA Announcements

To support clear and consistent communication moving forward, HHFS will utilize program update bulletins as the primary method for issuing program updates, policy clarifications, and announcements related to the Detroit DPA Program.

Participating lenders and real estate professionals are expected to review all bulletins upon release and incorporate applicable updates into their processes accordingly.

Funding, Layering & Use of Funds

What can the borrower’s $1,000 contribution be used for?

It can be applied toward eligible homebuyer costs, such as earnest money deposit, appraisal, or inspections.

Can the $1,000 come from gift funds?

Yes, subject to lender guidelines and documentation requirements.

an buyers receive cash back at closing?

Yes, up to the documented cost of the visual lead inspection, not to exceed $1,000. Funds must be used toward eligible transaction cost s.

Can Detroit DPA be layered with other programs?

Yes—with approved programs, as long as total assistance aligns with program rules and lien positioning requirements.

Will the City allow additional lien positions (e.g., 3rd lien)?

Yes, for MSHDA down payment assistance programs. For other programs, documentation for the layered program will be required and reviewed case-by-case for decision.

Lead Inspection Requirements

Is a lead inspection required?

Yes. A passing visual lead inspection is required to use Detroit DPA.

Is the inspection visual only or does it include testing?

The requirement is for a visual lead inspection, not swab or lab testing.

Does this apply to all homes?

Lead requirements generally apply to homes built before 1978, especially if there is peeling, chipping, or flaking paint.

Who can perform the inspection?

Inspections must be completed by a properly certified lead professional (state-certified in Michigan).

Is there a list of approved lenders and inspectors?

Yes. The City provides approved lender and lead professional resources through official channels.

What happens if lead hazards are identified?

To move forward, the property must be remediated and re-inspected until it passes. Detroit DPA will not accept homes that fail a visual lead inspection.

How many re-inspections are allowed?

Re-inspections are allowed as needed until the property meets the standard, though timelines should be managed carefully within the transaction.

Can FHA appraisal replace the lead inspection?

No. FHA appraisals do not replace the required visual lead

Application Process & Systems (Neighborly)

When can a borrower apply in Neighborly?

Borrowers must have an executed purchase agreement, mortgage preapproval, and a homebuyer education certificate before submitting their application.

Can Realtors and Lenders create cases for clients?

Yes—Realtors can assist by creating cases using the client’s name and email, but the application is still tied to the homebuyer.

Can paper applications be submitted?

No. The program is administered through the Neighborly system, and digital submission is required.

Income, Ratios & Unmet Need

How is the 30% housing ratio calculated?

The program uses total household income (not just borrower income) to calculate the housing expense ratio.

Does the 30% ratio vary by loan type (FHA vs Conventional)?

No. The 30% housing ratio requirement is consistent across loan types.

How is “unmet need” determined?

Unmet need is the gap between total funds needed to close and other assistance outside of Detroit DPA available to the borrower.

Program Eligibility & Borrower Qualification

Do all household members need to be included in the DPA application?

Yes. The program evaluates total household income, so all individuals residing in the home must be disclosed, even if they are not on the loan.

Can a separated spouse’s income be excluded?

In certain cases, yes—if the borrower can document that they are legally separated and maintaining separate households (e.g., separate tax filings, proof of residence). Final determination is made during underwriting.

Is there an asset limit for buyers?

No, the borrower’s liquid assets are not assessed in the unmet need calculation.

If a borrower has enough funds to close but needs them for reserves, are they eligible?

Potentially. Eligibility depends on whether those funds are required to qualify for the mortgage, which may still demonstrate a financial gap under program guidelines.

Are repeat homebuyers eligible?

The program is designed for first-time homebuyers and buyer who have not held ownership interest in property the past 3 years.

If a borrower was added to a deed but never lived in the home, are they still eligible?

This may still qualify as a first-time homebuyer depending on the circumstances. Documentation will be required and reviewed case-by-case.

City of Detroit

Detroit DPA Professionals Guide

DPA Announcements

Best Practice Tools

News & Events

Funding, Layering & Use of Funds

Lead Inspection Requirements

Application Process & Systems (Neighborly)

Income, Ratios & Unmet Need

Program Eligibility & Borrower Qualification

Contacts City Directory

Detroit DPA Unmet Need Quick Guide for Lenders

Detroit DPA - Visual Lead Inspection Best Practices Guide