The First time home buyer grant became available in Michigan December 7th. A first time home buyer is classified as a buyer who has never owned a home, or has not owned a home within the last 3 years. This will be checked through credit, tax returns, and previous addresses (in the case of a land contract).

 There is only $15 Million reserved for this. My best guess is that this may only be available for 2 weeks in Grand Rapids since it is on a first come first serve basis. This is part of a nationwide class action lawsuit, so it is not the same as the first time home buyers assistance of the past where there is a chance for more funds to be allotted. A $3,000 grant is available for first time, non-military buyers, and a $5,000 grant available for first time buyers who are veterans, or currently active in the military.

 Files must be fully approved and clear to close before they can be sent to MSHDA for approval of the grant. That being said, anyone who is out looking at homes currently may not have a chance to get these funds. Most likely only those buyers with files in process at this time.

 Funds can only be used towards:

  • Down payment
  • Closing costs
  • Pre-paid items

Any funds that are not used toward the above can be used to execute a principal reduction at close. (No cash back at close except for EMD, or application fees).

  •  No re-payment of grant and no income restrictions
  • Valid for FHA, RD, VA, Conventional, and JUMBO purchase mortgages
  • Payoff of a land contract not acceptable
  • Buyer purchasing a home for cash, not eligible for grant


  • Title Company must be approved through MSHDA to receive these grants as the money comes directly from MSHDA to the title company. PLEASE make sure your title company is signed up and approved for this grant.
  • From the time that our file is clear to close, until we can close with this grant program, plan on 10 days. This could cause delays or needed extensions with the purchase agreement.


-Mark Brace