Detroit will put up to $25,000 toward a first-time buyer’s house. The city’s Down Payment Assistance Program is a grant, not a loan, and if you stay in the home three years you never pay it back. Round three launched March 11, 2026 and is expected to help up to 450 more buyers. The first two rounds created nearly 800 first-time homeowners, with an average award of nearly $25,000 and participants averaging about $970 a month in total mortgage costs. Here is who qualifies, what the money covers, and exactly what you need before you apply.
The Program at a Glance
| How much | Up to $25,000 per household |
| What it covers | Down payment, closing costs, interest rate buy down, or principal reduction |
| Repayment | None, if the home stays your primary residence for three years |
| Income limit | Under 80 percent of area median income, adjusted for household size |
| Residency | Lived in Detroit the last 12 months, or lost a Detroit home to tax foreclosure between 2010 and 2016 |
| Decision time | About two to three weeks after a complete file |
Who Actually Qualifies
Three tests, and you need all three.
First, you cannot have held marketable interest in a property in the last three years. That is broader than never having owned a home, so previous owners who have been out of the market can still be eligible.
Second, residency. You must show you lived in Detroit for the last 12 months, or that you lost a home in the city to property tax foreclosure. Read that second path carefully. The city requires stamped foreclosure documents from the Wayne County Treasurer dated between January 1, 2010 and December 31, 2016. It aims squarely at people the foreclosure wave pushed out of ownership, and if your foreclosure fell outside that window it does not apply to you.
Third, income. Household income must fall under 80 percent of area median income, which HUD sets each year and adjusts for household size. Here are the current ceilings:
| Household size | Income limit |
| 1 person | $58,700 |
| 2 people | $67,100 |
| 3 people | $75,500 |
| 4 people | $83,850 |
| 5 people | $90,300 |
| 6 people | $97,300 |
| 7 people | $104,000 |
| 8 people | $110,700 |
What the Money Can Do
The award is more flexible than the name suggests. It can go toward the down payment, but it can also cover closing costs, buy down the interest rate, or reduce principal.
That flexibility matters. For some buyers, the barrier is not the down payment at all. It is the closing costs that appear late in the process, or a monthly payment that would be manageable at a slightly lower rate. The program can be pointed at whichever wall you actually hit.
It also includes homebuyer education and counseling, which is not filler. Completing a HUD or MSHDA-approved course is a requirement, so it is part of the process either way.
The Repayment Rule Worth Understanding
This is a grant, not a loan, with one condition. The house has to be your principal residence for three years after the award. Stay that long and you owe nothing.
Leave early and the grant is repaid on a pro-rated basis, meaning you owe back a share rather than the whole amount. Know that going in if there is any chance a job or family situation moves you inside three years.
Round Three Is Disaster Money
This round is funded differently than the first two, and it changes who gets to the front of the line. Detroit is paying for it with $1.7 million in HUD Community Development Block Grant funds and $8.77 million in CDBG Disaster Recovery funds, money released after the August 2023 flooding.
Because of that, residents affected by the August 2023 flood get priority consideration. To claim it, you have to provide a FEMA claim or a Detroit Water and Sewerage Department claim. If you flooded that August and have the paperwork, say so when you apply.
What to Have Ready Before You Apply
Applications go through the city’s online portal, and an incomplete file is the main thing that slows people down. Gather these first:
- A lender pre-approval letter
- An accepted purchase agreement
- Proof you completed HUD or MSHDA-approved homebuyer education
- Recent income documentation and tax returns
- Bank statements and identification
- Proof of Detroit residency, which the city spells out as ID issued at least 12 months before you apply, a signed lease, 12 months of bill statements with a strong preference for utility bills, and year-end tax documents
- A visual lead inspection, also called a risk assessment, which is required before an award
Note the second item. You need a purchase agreement already accepted, so this is not a program you apply to before house hunting. It comes after you have found the place. Once a complete file is in, expect about two to three weeks for a decision.
Where to Start
Program details and the application portal are on the City of Detroit site. National Faith Homebuyers helps administer the program and can be reached at (313) 255-9500, and the Detroit Housing Resource HelpLine is (866) 313-2520, option 3 for this program, the same number the city uses for its Homeless to Housed program.
Funding rounds open and close, so confirm the program is taking applications before you build a timeline around it. More in our Community coverage.
Detroit Down Payment Assistance FAQ
How much can I get?
Up to $25,000.
Is it a loan?
No. It is a grant, forgiven if you stay three years, pro-rated if you leave sooner.
Do I need to live in Detroit already?
Yes, for the last 12 months, unless you lost a Detroit home to property tax foreclosure between 2010 and 2016.
Can I apply before finding a house?
No. You need an accepted purchase agreement as part of the application.