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Home buyer help · Michigan

Buying a home in Michigan: the help you may qualify for.

Down payment assistance, property tax exemptions and veteran benefits in Michigan, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.

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Last checked November 11, 2026Sources state agencies

Down payment and closing cost help

From the Michigan State Housing Development Authority (MSHDA).

  • MI 10K DPA Loan

    Up to $10,000

    0% loan with no monthly payment, with an MSHDA MI Home Loan, for down payment, closing costs or prepaids.

  • MI DPA Loan

    Up to $7,500

    Statewide down payment help with an MSHDA loan.

Who qualifies: Credit score 640+, sales price up to $566,355 (after June 1, 2026), income limits and homebuyer education, through an MSHDA-approved lender.

Property tax exemptions and credits

Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your local assessor. Michigan’s official exemptions information.

For homeowners who live in the home

  • Principal Residence Exemption (PRE)

    Exempts your home from the local school operating tax (up to 18 mills)

    For a home you own and live in as your principal residence. Active-duty military may keep it while deployed, even if they rent the home out.

    How to apply: Form 2368 with your city or township assessor (by June 1 for the summer levy or November 1 for the winter levy). (MCL 211.7cc)

For homeowners 65 and older

  • Homestead Property Tax Credit

    A credit on your state income tax return

    Lower-income homeowners can get part of their property tax back, with larger credits for seniors, people with disabilities and veterans. You can claim it even if you owe no income tax.

    How to apply: Form MI-1040CR (or MI-1040CR-2 for veterans and blind homeowners). (Michigan Department of Treasury)

For veterans

  • Disabled veterans exemption

    Full exemption on your home

    For veterans with a 100% permanent and total VA rating, a specially adapted housing certificate or individual unemployability, and qualifying surviving spouses. No income or asset test, and since 2025 you don't need to reapply each year.

    How to apply: Form 5107 with your local assessor. (MCL 211.7b)

Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.

If you serve or served

  • VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
  • Property tax: veterans in Michigan may qualify for Disabled veterans exemption. See the details above.

Your next steps

  1. Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists Michigan’s programs with the loans you may qualify for.
  2. Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
  3. Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
  4. Follow the step-by-step home buyer’s guide from budget to keys.

Common questions

Does Michigan have down payment help for home buyers?

Yes. Programs from the Michigan State Housing Development Authority (MSHDA) include MI 10K DPA Loan, MI DPA Loan. Credit score 640+, sales price up to $566,355 (after June 1, 2026), income limits and homebuyer education, through an MSHDA-approved lender. Funding and rules change often, so check with the agency or a participating lender.

Does Michigan have a homestead or property tax exemption for homeowners?

Yes. Homeowners who live in the home may qualify for: Principal Residence Exemption (PRE). Apply with your local assessor; most exemptions aren't automatic.

Is there help for veterans buying a home in Michigan?

VA home loans are available in every state, often with no down payment. Veterans may also qualify for property tax benefits such as Disabled veterans exemption.

Sources: Michigan State Housing Development Authority (MSHDA) and Michigan’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.