What is MSHDA and how does it help first-time homebuyers in Grand Rapids?

The Michigan State Housing Development Authority (MSHDA) is a state agency that runs the MI Home Loan program, which pairs a 30-year fixed-rate mortgage with up to $10,000 of down payment assistance for qualified first-time buyers in Grand Rapids and across Kent County. As of 2026, MSHDA defines a first-time buyer as someone who has not owned a primary residence in the past three years, and the program requires a minimum 3.5% down payment along with completion of a homebuyer education course. For a typical $300,000 Grand Rapids home, MSHDA can shrink the cash-to-close from roughly $20,000 to under $10,000, making the difference between renting another year and closing this spring. The program is layered with FHA, VA, RD, or conventional financing, and the $10,000 assistance is structured as a soft second mortgage that is repaid only when the home is sold, refinanced, or no longer the primary residence.