Westland Down Payment Assistance and First-Time Homebuyer Programs

Westland is a vibrant city highly regarded for its family-friendly neighborhoods, diverse community, and strong community pride. The city continues to attract new residents and businesses, making it a great place to call home. However, as part of Wayne County, it also suffers from some of the housing issues in the region.

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

Down payment assistance programs in Westland

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.

Westland Down Payment Assistance

As such, the City of Westland’s Homebuyer Assistance Program provides down payment and closing cost assistance for low to moderate-income first-time homebuyers in the region. This assistance is provided through deferred payment loans, which would be repaid in full if the homebuyer sells the property during the specified five-year term of affordability.

Assistance type: Deferred Payment Loans

Sponsor: City of Westland

Assistance amount: Up to $7,500 for homes built before 2000 and $14,500 for homes built since 2000

Eligibility requirements

• Applicants must be first-time homebuyers.
• Every borrower’s annual gross income must not exceed 80% of Detroit’s median income as determined by HUD income limits.
• Property must be the homebuyer’s primary residence located anywhere within the City of Westland.

Statewide down payment assistance programs available in Westland

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.