640, and Why the Score Is Not the Whole Decision
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
The credit number is the one people ask about first and the one that explains the least about whether a file works.
640 is a floor
MSHDA requires a minimum credit score of 640 on the MI Home Loan. Below that the program is closed regardless of everything else in the file. At or above it, the program is open and the file still has to work.
That distinction matters because people treat a published minimum as a pass mark. It is the opposite: it is the point at which the real underwriting starts.
It gates the assistance too
There is no separate credit path for the MI 10K DPA. MSHDA requires the assistance to be combined with a MI Home Loan, so the first mortgage's 640 minimum is the gate on the $10,000 as well. A buyer at 620 does not have a lower-score assistance option to fall back on within MSHDA.
What they do have is time. Scores move, and the specific items dragging a 620 down are usually identifiable. Send us a copy of your report and we will tell you what is actually in the way rather than give you generic advice about paying down cards.
What else the file is judged on
| Factor | MSHDA published? | Where the rule comes from |
|---|---|---|
| Credit score | Yes, 640 | MSHDA program terms |
| Household income limit | Yes, by county | MSHDA limits sheet |
| Sales price limit | Yes, $566,355 | MSHDA limits sheet |
| Debt-to-income ratio | Not as a MSHDA headline | The agency product under the loan |
| Reserves | Not as a MSHDA headline | The agency product under the loan |
| Mortgage insurance | Yes, MGIC or ARCH only | MSHDA lender guideline |
We will not print a debt ratio cap here. The governing ratio comes from whichever agency product sits under the MI Home Loan, and FHA, Fannie Mae HFA Preferred and Freddie Mac Home Possible Advantage do not treat it identically. Quoting one number as the Michigan answer would be wrong for at least two of the three.
One helpful feature of the assistance
The MI 10K DPA carries no monthly payments. So the $10,000 is not sitting in your debt-to-income ratio as a payment the way a conventional second mortgage would be.
That is a real structural advantage for a borrower who is tight on ratio. The assistance solves the cash problem without creating a payment problem. The assistance in detail.
The mortgage insurance constraint
On the conventional side, MSHDA's guideline limits private mortgage insurance to MGIC or ARCH, using Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage. Two carriers rather than the usual field.
That is worth knowing when you compare the conventional route against FHA, because the comparison on a MSHDA file is narrower than the comparison on an ordinary loan. Conventional with assistance · FHA with assistance.
If you are close
A file at 635 is not a no, it is a not yet, and the gap is often smaller than it looks. What we do is read the report, identify the two or three items with the most leverage, and give you a realistic timeline. Sometimes that is 45 days. Sometimes it is longer and you should know that before you start shopping.
The full eligibility test · have us look at it.
Frequently asked questions
What credit score do you need for MSHDA down payment assistance?
640. That is the minimum credit score on the MI Home Loan, and because the MI 10K DPA must be combined with a MI Home Loan, the same 640 floor applies to the assistance. There is no lower-score route to the $10,000 within MSHDA. A 640 score opens the program rather than guarantees an approval, since income, debt ratio and the rest of the file still have to work.
Can I get MSHDA with a 620 credit score?
No. MSHDA's published minimum is 640 and the program is closed below it, including for the MI 10K DPA, which cannot be separated from the MI Home Loan. Scores do move, though, and the items holding a 620 down are usually identifiable, so the useful next step is having someone read the actual report rather than guessing at a timeline.
What debt-to-income ratio does MSHDA allow?
MSHDA does not publish a single debt ratio as a headline term, because the governing ratio comes from the agency product sitting under the MI Home Loan, and FHA, Fannie Mae HFA Preferred and Freddie Mac Home Possible Advantage do not treat it identically. Quoting one number as the Michigan answer would be wrong for at least two of those three, so we read your file against the specific product instead.
Does the MI 10K DPA count against my debt-to-income ratio?
The assistance carries no monthly payments, so it does not add a monthly obligation to the ratio the way a conventional second mortgage would. That makes it structurally useful for a borrower who is tight on ratio: it solves the cash-to-close problem without creating a payment problem. The underlying first mortgage payment is of course still counted.
Which mortgage insurance companies can be used on a MSHDA conventional loan?
MGIC or ARCH only, per MSHDA's lender guideline, and only on the Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage product. That is a narrower field than an ordinary conventional loan, which is why the FHA versus conventional comparison on a MSHDA file needs to be run on the actual available options rather than in general terms.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. MSHDA program terms, income limits and sales price limits are set by the Michigan State Housing Development Authority and change; figures here carry the date we verified them against MSHDA's published documents. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address. Loans are subject to borrower and property qualification.