How much money can I get from Detroit's Down Payment Assistance Program Round 3?

Round 3 provides up to $25,000 in down payment and prepaid cost assistance per eligible household, similar to the first two phases.

How do I apply for Detroit's Down Payment Assistance Program?

Applications are available at detroitmi.gov/DPA or by calling the Detroit Housing Resource HelpLine at 866-313-2520, option 3. Applicants must first pre-qualify for a mortgage, have a signed purchase agreement, and complete a HUD-approved homebuyer education course.

Detroit's Down Payment Assistance Program Opens Round 3 With Up to $25,000 for Eligible Buyers

Q: What are the income limits for Detroit DPA Round 3?

Eligibility is capped at 80% of Area Median Income, with a maximum 30% payment-to-income ratio required.

Detroit's Down Payment Assistance Program opened applications for its third round on March 11, 2026, with Mayor Mary Sheffield and the Detroit Housing and Revitalization Department announcing up to $25,000 in direct assistance available to eligible homebuyers^[1]. The program, launched in March 2023, has already supported 794 households in becoming homeowners, with the average award approaching $25,000^[1]. Round 3 is funded with $1.7 million in HUD Community Development Block Grant funds and $8.77 million in CDBG-Disaster Recovery funds, enabling the city to assist up to 450 new homebuyers^[1].

The announcement took place at Crowell Recreation Center in District 1, which recorded the highest concentration of home purchases through the first two phases of the program^[1]. Mayor Sheffield said the DPA Program represents part of her broader strategy to restore Detroit's position as a national leader in single-family homeownership^[1].

"Few things are as meaningful to a family as owning their own home. Not only does it provide stability and security that doesn't come with renting, it's a major way to build generational family wealth," Mayor Sheffield said on March 11, 2026^[1].

Who Qualifies for Round 3

Eligibility for the third round is capped at 80% of Area Median Income, with a maximum 30% payment-to-income ratio required^[1]. Applicants must be Detroit residents for at least 12 months, or must have lost a home to property tax foreclosure between 2010 and 2016^[1]. The program requires pre-qualification for a mortgage with a participating lender, a signed purchase agreement, and completion of a HUD-approved homebuyer education course^[1].

Households impacted by the August 2023 flooding disaster receive priority consideration during the application review phase^[1]. Applicants can demonstrate flood impact by providing documentation through the program partner^[1].

The program is administered by National Faith Homebuyers, a Detroit-based nonprofit that has assisted metro Detroiters since 1996^[1]. The Ownership Initiative, a Black-owned advisory firm headquartered in Detroit, helped design the program and has created more than 30 wealth-building and housing initiatives across six states^[1].

What Comes Next

The application portal is managed through Neighborly Software, with program staff available to assist applicants through the Detroit Housing Resource HelpLine at 866-313-2520, option 3^[1]. Detailed program requirements and applications are available at detroitmi.gov/DPA^[1].

The CDBG-DR funding for this round is part of a broader HUD allocation announced January 7, 2025, when HUD allocated nearly $12 billion in disaster recovery funds to communities across 24 states and territories^[3].

What This Means for Applicants

The DPA Program has an established track record: 794 households became homeowners through the first two phases, with average awards approaching $25,000^[1]. Monthly mortgage costs for program participants have averaged $970, below typical rental rates in the region^[1]. Applicants entering Round 3 are applying to a program with verified outcomes rather than a pilot.

The program does not require repayment under standard ownership scenarios. Funds are structured as down payment and prepaid cost assistance rather than a loan that must be repaid monthly. The income cap at 80% AMI and the 30% payment-to-income ratio are designed to ensure that recipients can sustain homeownership after closing, reducing the risk of default.

The prioritization for households impacted by the August 2023 flooding disaster represents a policy decision by the city to direct federal disaster recovery funds toward residents who experienced verified losses. Applicants who can demonstrate flood impact through available documentation may receive priority consideration during the review process.

The program's implementation by National Faith Homebuyers, combined with mortgage pre-qualification and homebuyer education requirements, creates a multi-step process that may extend the timeline from application to closing. Applicants should begin the mortgage pre-qualification process early, as that step must be completed before applying for DPA funds.

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