Seeing Green: MSHDA’s Homebuyer Programs & How They Can Save You Thousands
For many buyers, the hardest part of buying a home isn’t finding the right one—it’s coming up with the cash to make it happen. That’s where MSHDA (Michigan State Housing Development Authority) steps in. With generous down payment assistance, competitive mortgage rates, and even federal tax credits (via MCC), MSHDA is making homeownership more accessible in Michigan. And the best part? It’s not just for first-time buyers.
What Is MSHDA?
MSHDA is a Michigan-based housing agency that offers low-interest mortgages, down payment assistance, and tax incentives to help buyers make the leap into homeownership.
2025 MSHDA Program Updates You Need to Know
1. The Purchase Price Limit Just Got a Huge Bump
In May 2025, maybe sooner, MSHDA will officially increase its maximum home price limit to $510,939, up from $224,500. This adjustment reflects Michigan’s rising home values and expands access to MSHDA’s programs for more buyers.
2. Mortgage Rates That Work for Buyers
- MSHDA loans come with competitive interest rates, helping keep your monthly payment in check.
- First-time and repeat buyers in targeted areas can take advantage of these lower rates.
3. MSHDA Down Payment Assistance (DPA)
- Offers up to $10,000 to cover your down payment, closing costs, and prepaids.
- Available for homes priced at $510,939 or less beginning May 2025 ($224,500 until then).
- Can be combined with MSHDA’s MI Home Loan or a conventional mortgage.
4. The First-Generation Homebuyer Program
- New for 2024-2025, this program gives eligible buyers $25,000 in down payment assistance.
- Designed for those whose parents never owned a home, helping them break the renting cycle.
- Covers both down payment and closing costs.
5. MI Home Loan Program: Not Just for First-Time Buyers
- Available to both first-time buyers and repeat buyers in targeted areas. (Below is a sampling for two WMI counties where repeat buyers could qualify to use the MSHDA program. For a complete list, please reach out.)
- Works with DPA assistance for even more affordability.
- Minimum credit score: 640 for FHA/VA/RD loans, 660 for conventional loans.
- Household income limits apply based on location and family size - reference the chart below.
6. MI 10K DPA Loan: Extra Help for High-Need Areas
- Offers $10,000 in down payment assistance for buyers in select ZIP codes.
- Only available in designated high-need areas across Michigan.
Mortgage Credit Certificate (MCC): A Hidden Tax Benefit
- The MCC program offers a federal tax credit equal to 20% of your annual mortgage interest paid, up to $2,000 per year.
- This credit reduces your federal tax bill every year for up to 30 years.
- The MCC can be used with MSHDA’s MI Home Loan, combining a low mortgage rate with an annual tax break.
Who Qualifies for MSHDA Programs?
You could qualify if you:
- Are a first-time homebuyer or a repeat buyer in a targeted area.
- Meet household income limits (which vary by county and family size).
- Have a credit score of at least 640 (some programs require higher scores).
- Complete a homebuyer education course (a must for most MSHDA programs).
What Programs Can Be Combined?
- The MCC program can be used with the MI Home Loan, maximizing savings on both mortgage rates and taxes.
- The First-Generation Down Payment Assistance Program cannot be combined with other MSHDA assistance like the MI 10K DPA Loan.
How to Apply
1. Find a Participating Lender – MSHDA programs are only available through approved lenders.
2. Get Pre-Approved – Work with your lender to determine eligibility and secure approval.
3. Complete Homebuyer Education – Required to ensure you understand the home-buying process.
4. Close on Your Home – Use MSHDA assistance to cover your down payment and closing costs.
Why MSHDA Matters Now More Than Ever
With Michigan’s housing market more competitive than ever, home affordability remains a challenge. MSHDA’s programs give buyers a fighting
chance by providing crucial financial support. Whether it’s a low-interest mortgage, down payment help, or a tax credit, these programs could be the
difference between waiting and owning.
Final Thoughts
Homeownership doesn’t have to be out of reach. If you’re considering buying, MSHDA could be the game-changer you need. With thousands of
Michigan residents already using these programs, the real question is—why wouldn’t you?
Want to know if you qualify? We can connect you with a preferred partner and participating lender - please reach out. Program details are subject to change, please get the most up to date information from a verified, participating lender.
