Offered by the Michigan State Housing Development Authority (MSHDA), the Next Home Down Payment Assistance Program is a second mortgage that must be used with the First Home or Next Home First Mortgage offered by MSHDA.

Up to $7,500 (or 4% of the purchase price, whichever amount is smaller) is offered in the form of a non-amortizing loan with 0% interest and deferred payment. The loan amount becomes due and must be repaid when the property is sold, transferred, refinanced, or if the first mortgage is paid off.

Applicants of this program must be a repeat homebuyer, meaning they cannot use this program to buy their first home. They must have a credit score of at least 660, fall within certain income limits (which depend on location and household size), and finish a homebuying education class.

The property being purchased using this program cannot be a manufactured house, nor can it cost more than $224,500 (as of 2020).

Other programs in Michigan:

• Michigan First Home Down Payment Assistance

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