Home Buyer Programs for Low-Income Single Parents in Michigan

Down Payment Assistance Program

The Michigan State Housing Development Authority provides down payment assistance to low-income families that qualify to purchase a home. The down payment assistance is a zero-interest loan that requires no repayment until the home is sold or transferred. Repayment is also required if the first mortgage is refinanced or paid off. Single parents with income at or below 80 percent of the area's median income are eligible for help. The purchase price of the home cannot exceed $224,500 for the homebuyer to qualify for down payment assistance. The buyer must contribute 1 percent of the home's sales price toward the purchase of the home from her own resources.

The Mortgage Credit Certificate program helps low-income families qualify for a higher priced home with a federal tax credit. First-time homebuyers may qualify to have 20 percent of their mortgage credited against their tax liability. This tax credit can be taken over the life of the first mortgage. The savings in tax liability allows the homebuyer to increase his purchasing power and expand the options for appropriate housing for himself and his children.

The Individual Development Account helps low-income families save up for the purchase of a home. The Michigan IDA Partnership establishes the account under the single parent's name. The parent saves money over the course of six to 36 months. Once the homebuyer has saved $1,000, the Michigan IDA Partnership provides a three-to-one match. The money can be used toward the purchase of a home. Income cannot exceed 200 percent of the federal poverty level to participate in the program. Financial management courses are also required.

There are 67 Habitat for Humanity organizations across Michigan that help low-income families achieve homeownership through their own work. Program participants must contribute 100 work hours toward the construction of a home to qualify for the home purchase program. The single parent's income cannot exceed 80 percent of the area's median income. He must also have good credit, steady income and be a U.S. citizen to qualify for help. The home buyer is required to attend homeowner education classes and make a down payment toward the purchase of the home.