The Michigan Assistance Guide, Start to Close
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Everything on this site, in the order you will actually meet it. Every figure carries the date we read it from MSHDA's own documents.
Step one: check the address, not yourself
This is the Michigan-specific move and it saves people weeks. Before you work out whether you count as a first-time buyer, find out whether the address is in a targeted area, because that decides whether the question matters.
MSHDA's legend: non-targeted areas must be a first-time homebuyer; targeted areas may be a first-time homebuyer or repeat homebuyer. And 66 of Michigan's 83 counties are targeted in their entirety.
The 17 split counties are Bay, Calhoun, Clinton, Eaton, Genesee, Jackson, Kent, Livingston, Macomb, Midland, Monroe, Muskegon, Oakland, Ottawa, Saginaw, Shiawassee and Wayne, which between them hold most of the state's population. In those, status is set place by place. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address. The county picture.
Step two: the four numbers
| Test | The number | Varies? |
|---|---|---|
| Credit score | 640 minimum | No |
| Sales price | $566,355 | No, statewide |
| Income, 1–2 people | $98,400 to $170,760 | Yes, by county and status |
| Income, 3 or more | $113,160 to $199,220 | Yes, by county and status |
Two of the four are fixed, which makes them quick to check. The income figures are the ones to look up properly: there are 22 distinct pairs across MSHDA's 99 rows. The county figures · check your band.
Step three: understand what you are borrowing
Up to $10,000, interest-free, no monthly payments, usable for down payment, closing costs and prepaid expenses, and it must be combined with a MI Home Loan.
MSHDA also states that max financing is not required, which means you can bring your own funds alongside the assistance rather than being pushed to the largest possible first mortgage. That is a genuine flexibility most state programs do not offer. The assistance in detail.
Step four: settle the occupancy question before you commit
MSHDA defers repayment until payoff of the first mortgage, the sale or refinance of the home, or when the home is no longer owner-occupied. The first three are transactions. The fourth is a condition that can arise while you still own the house.
If your plan is to live in this home and eventually rent it out, that is the moment the $10,000 becomes due, and you should decide now whether the assistance is still worth it. Often it is. The point is to decide rather than discover. Owner-occupancy.
Step five: education, immediately
A housing education class on the MI Home Loan, and a homebuyer education certificate of completion for all homebuyers on the MI 10K DPA. All of them. Start it the week you decide to apply, not the week before closing. Education.
Step six: choose the product underneath
The MI Home Loan runs on an agency product, and which one changes your down payment, mortgage insurance and condition requirements. MSHDA narrows the conventional choice: private mortgage insurance from MGIC or ARCH only, on Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage.
Step seven: expect the extra steps
A MSHDA file has procedural differences from an ordinary agency loan. They do not change whether you qualify; they change the calendar.
- MSHDA does not accept MERS forms.
- A pre-closing compliance review is required, so MSHDA reviews the file before it closes.
- A Home Inspection Education Disclosure is required on all new loan submissions as of June 1, 2026.
- The master servicer is LoanCare, LLC, so your payments will not go where an ordinary Cornerstone loan's would.
We build these into the timeline from day one, which is the difference between a MSHDA file that closes on time and one that does not.
Where the market sits
Every one of the 31 Michigan metros in Zillow's August 2026 data rose year over year. Traverse City is the most expensive at a typical value of $422,480, which still leaves $143,875 under the sales price cap. Detroit sits at $267,167, Grand Rapids at $357,283, Lansing at $249,666 and Flint at $196,792.
So Michigan is a state where the assistance goes a long way. Ten thousand dollars against a $267,167 Detroit typical value is a materially different proposition than the same $10,000 in a coastal market. The price limit and the market.
By metro
Detroit and Wayne County · Grand Rapids and Kent County · Ann Arbor and Washtenaw · Flint and Saginaw · the smaller metros.
On dates
Income and sales price figures here are MSHDA's, effective June 1, 2026, read from the published limits sheet on 2026-09-26. Program terms were read from MSHDA's program pages the same day. Conforming limits are FHFA's 2026 file. Typical values are Zillow's public ZHVI series, data month August 2026.
All of it moves. Ask us for the current figure before you rely on any of it, and we will read it off the live document. Start here.
Frequently asked questions
How does down payment assistance work in Michigan?
MSHDA pairs one first mortgage, the MI Home Loan, with one assistance loan, the MI 10K DPA, which provides up to $10,000 toward down payment, closing costs and prepaid expenses, interest-free and with no monthly payments. Eligibility runs off the address first: first-time homebuyers can use it statewide, and repeat homebuyers can use it in targeted areas, which covers 66 of Michigan's 83 counties in their entirety.
What is the first thing to check for MSHDA eligibility?
Whether the address is in a targeted area, because that decides whether the first-time homebuyer requirement applies at all and which income column you read. MSHDA's limits sheet states that non-targeted areas must be a first-time homebuyer while targeted areas may be a first-time homebuyer or repeat homebuyer. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
How long does a MSHDA loan take to close?
Longer than an ordinary agency loan, mainly because MSHDA requires a pre-closing compliance review, so the file is reviewed before it can close. The guideline also requires a Home Inspection Education Disclosure on all new loan submissions as of June 1, 2026, and MSHDA does not accept MERS forms. None of that affects whether you qualify, but it all affects the calendar, so it belongs in the schedule from the start.
Who services a MSHDA loan after closing?
The master servicer is LoanCare, LLC, so your payments go there rather than to the lender who originated the loan. That is worth knowing at closing so the first payment coupon is not a surprise, and it differs from the Illinois and Ohio housing agency programs, which use a different master servicer.
How far does $10,000 go in Michigan?
Further than in most states, because Michigan's values are moderate. In Zillow's August 2026 data Detroit's typical value was $267,167, Flint's $196,792 and Lansing's $249,666, so $10,000 covers a meaningful share of a down payment and closing costs rather than a rounding error. Every one of the 31 Michigan metros in that dataset rose year over year.
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.