Michigan Grants There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down.  Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level.  Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds.  State Sponsored Bank Sponsored Matching Funds Programs Community/local Sponsored Grants Seller Funded Down Payment Assistance Programs State Sponsored  The State of Michigan offers a soft second grants of up to $7,500, to be used for down payment and closing costs. There are no monthly payments required on this soft second. It must be repaid at the sale of the home. Below is a link to the State’s web site:  www.michigan.gov/mshda/0,1607,7-141-45866_45870-172114--,00.html Bank Sponsored Matching Funds Programs  Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information. Community/local Sponsored Grants Berrien County Greater Niles Community Development Corporation Acquisition/Development/Resale Program (ADR)  (517) 241-4474  Dickinson and Iron Counties Dickinson Iron Community services Agency/U.P. Community Services, Inc. (DICSA/UPCSI)  Home Purchase Program (DPAP)  (906) 774-2256  Jackson County Jackson Affordable Housing Corporation Down payment Assistance Program (DAP)  (517) 788-4626  Lansing Down Payment Assistance (DPA) Program  (517) 372-5980  Lansing Home Ownership Program for Employees (LHOPE)  (517) 483-4593  Multi Counties Little Travese Bay Band of Odawa Indians Down Payment/Closing Cost Assistance Program (LTBB)  (231) 242-1546  Schoolcraft County Homebuyer Assistance Program (HAP)  (906) 341-5126  Wayne County First Time Home Buyers Program (FTHB)  (313) 224-5011 Seller Funded Down Payment Assistance Programs There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site. American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm Nehemiah Corp:    http://www.nehemiahcorp.org/