Livonia Down Payment Assistance and First-Time Homebuyer Programs

Ranked as Michigan’s sixth-largest city, Livonia offers so much that makes it a unique place to call home. Residents can enjoy its easy access to downtown Detroit and Ann Arbor, top-rated schools, excellent rec center, engaging events all year, and somewhat affordable housing compared to higher-priced nearby areas.

Are you looking to buy a home in Livonia? On this page, we’ll break down home buyer programs that will help you become a home buyer.

Down payment assistance programs in Livonia

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Livonia Down Payment Assistance

First-time homebuyers in Livonia can also explore the city’s Down Payment Assistance Program to ease the financial strain of homeownership. This program helps residents who have not owned a home in the past three years to purchase specific properties, including single-family homes, condos, and multifamily units within Livonia.

Assistance type: Forgivable Loans

Sponsor: City of Livonia

Assistance amount: $14,999

Eligibility requirements

• Applicant’s household income must be at or below 80% of the Area Median Income.
• The homeowner must occupy the purchased home as the primary residence for five years for the second mortgage to be forgiven.
• Applicants must complete homebuyer education.

Statewide down payment assistance programs available in Livonia

Michigan State Housing Development Authority

The Michigan State Housing Development Authority (MSHDA) offers homeownership assistance programs for Michigan residents through the MI Next Home Down Payment Assistance and the MI First Home Down Payment Assistance.

Both programs are zero-interest, non-amortizing loans with no monthly payment and can be used in conjunction. However, the MI Next Home Down Payment Assistance is designed for repeat homebuyers, while the MI First Home Down Payment Assistance is for first-time homebuyers.

Assistance type: Forgivable Loans

Sponsor: Michigan State Housing Development Authority

Assistance amount: $7,500 or 4% of the sales price

Purchase price limit: $224,500

Eligibility requirements

• Applicants must have a minimum credit score of 640 or 660, depending on specific conditions.
• Only qualifying borrowers can apply for the Next Home Down Payment Assistance, while all adults in the household intending to occupy the residence must co-apply for the First Home Down Payment Assistance.
• First-time homebuyers must complete a homebuyers education course.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.