How Does It Work?

 

The City of Detroit Down Payment Assistance Program aims to rebuild homeownership in Detroit. The program provides qualifying residents grants up to $25,000 for a down payment, prepaid including interest rate buy down, closing costs, and principal reduction in conjunction with purchasing a home using a purchase mortgage or a purchase renovation mortgage.


The grants are available to homebuyers who have not held an interest in a property for the last three years. All grant recipients must have household incomes of less than 300% of the national poverty level issued annually by the Department of Health and Human Services. The purchased home must be the principal resident for three years after the grant is awarded or the grant must be repaid.

DPA Frequently Asked Questions

How do I know if I qualify?

To qualify for the Detroit Down Payment Assistance Program, you must have lived in the City of Detroit for the last 12 months, OR you must prove you lost a home to property tax foreclosure within the City of Detroit between 2010 and 2016.


Your household must be income eligible for the program based on the income limits in the table below based on family size.

1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
$45,180 $61,320 $77,460 $93,600 $109,740 $125,880 $142,020 $158,160


Residents who get Down Payment Assistance through this program must purchase a home in Detroit. To apply for this program, you also will need to complete a HUD Homebuyer Education Course, be pre-qualified by a lender, and have a signed purchase agreement. More information on these requirements can be found in Step 2 of this website.

 When should I apply?

Funding for this program will be distributed to households on a first-come, first-served basis. To apply for the program, you must have completed a Homebuyer Education course, be pre-qualified by a lender, and have a signed purchase agreement.

 Does the money come directly to me?

The funding for the grant does not go directly to the homebuyer. The funding will be sent to the closing to cover all applicable required costs (i.e., down payment, closing costs, and prepaids).

 Do I automatically receive $25,000 if I qualify for assistance?

You will not automatically receive $25,000. Granted funds will be awarded up to $25,000 based upon multiple factors which include purchase price, prepaids including interest rate buy down, closing costs, and repairs financed into a renovation mortgage. The total amount of assistance cannot exceed 50% of the purchase price.

 How long does it take to receive the down payment assistance?

Once a complete file has been received the anticipated length of time for review and decision is 2-3 weeks.

 Can I combine different forms of down payment assistance?

Yes, you can have multiple forms of down payment assistance; however, it must be acceptable to your lender.

 Can I get this assistance if I am not a first-time homebuyer?

You are not eligible for this program if you currently own a home or have owned a home in the past three years. However, you can be eligible for this program if you can prove that you lost a home to property tax foreclosure within the City of Detroit between 2010 and 2016.

 Can I use this assistance more than once?

No, you may not use this assistance more than once.

 Are there any income restrictions on this assistance?

You have to meet income requirements in order to be eligible for this program. Your household must be income eligible for the program based on the income limits in the table below based on family size.

1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
$45,180 $61,320 $77,460 $93,600 $109,740 $125,880 $142,020 $158,160
Can I use a resource (Lender, Homebuyer Education, etc.) that is not listed on the site?

Yes, you can use resources other than those listed on our website. The resources list is for informational purposes only. They are not recommendations by the City of Detroit nor National Faith Homebuyers. Participants are free to select lenders, HUD approved homebuyer counseling agencies, and realtors of their choice.

 Can I use a homebuyer counselor that is not listed on the site?

Yes, so long as the homebuyer counseling agency is approved by HUD.

 Do I have to work with a realtor to receive the down payment assistance?

No, you do not have to work with a realtor to receive assistance if you qualify.

 How can I prove that I have not held an interest in property for the last 3 years?

You will sign the homebuyer interest certification form and may be asked to provide additional documentation at request of the city or National Faith Homebuyers

 How can I prove that I am a Detroit resident and that I lived in the city for the last 12 months?

Residents can present one of the following documents showing greater than 12 months from the date of the down payment assistance application:

  • Valid identification with an issued date at least 12 months prior to DPA application
  • A signed lease agreement
  • 12 months of bill statements with a strong preference for utility bills
  •  Year end tax documents such as Tax Returns, W2, Social Security, or 1099 statement

All documents proving residency shall be submitted to National Faith Homebuyers for acceptance and National Faith Homebuyers has the right to ask for additional supporting documentation to satisfactorily prove residency inclusive of but not limited to the following:

  • A letter of explanation
  • Verification of Rent
 How can I prove that I lost a home due to property tax foreclosure within the city of Detroit during the period of 2010-2016?

Residents can provide stamped foreclosure documents from the Wayne County Treasurer reflecting a date between January 1, 2010, and December 31, 2016. 

COMPLETE ELIGIBILITY CHECK SURVEY