The MSHDA Eligibility Test, In Order
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Most eligibility pages start with the borrower. In Michigan that is the wrong end. Start with the address and half the questions answer themselves.
Step 1. Is the address in a targeted area?
This single question decides whether prior ownership matters and which income column you read.
| Address status | First-time buyer required? | Income limit, 1–2 people |
|---|---|---|
| Targeted | No — repeat buyers allowed | $118,080 floor, up to $170,760 |
| Non-targeted | Yes | $98,400 floor, up to $129,000 |
66 of 83 counties are targeted in their entirety, and 17 are split by city and township. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address. The county picture.
Step 2. If required, do you pass the three-year test?
MSHDA's first-time homebuyer definition is not having owned a home in the previous three years. It is a look-back window, not a lifetime bar, so a household that sold in 2021 and has rented since is first-time again for MSHDA's purposes. More on the three-year test.
Step 3. Does your household income fit?
Two columns, one for one to two person households and one for three or more, and the figure depends on the county and on targeted status inside split counties. The floors are $98,400 and $113,160 non-targeted, $118,080 and $137,760 targeted, and Washtenaw tops out at $170,760 and $199,220.
Note the household-size boundary carefully. It is one to two against three or more, so the jump happens at the third person and there is no separate figure for a household of five. Every county figure · check your band.
Step 4. Credit, price and property
- Credit score 640 minimum on the MI Home Loan.
- Sales price limit $566,355 after June 1, 2026, the same figure statewide. With the most expensive Michigan metro at a typical value of $422,480, this cap has $143,875 of headroom and does not bind at typical values anywhere in the state.
- The property has to be one you will occupy. Property rules.
Step 5. Education
A housing education class is required on the MI Home Loan, and the MI 10K DPA requires a homebuyer education certificate of completion for all homebuyers on the loan. Not one of the borrowers. All of them. How to complete it.
Step 6. The requirement that outlives closing
Everything above is tested before you close. Owner-occupancy is not. MSHDA defers MI 10K DPA repayment until payoff of the first mortgage, the sale or refinance of the home, or when the home is no longer owner-occupied, and that last clause runs for as long as the assistance is outstanding.
If there is any chance you will move out and rent the house, read this page before you close, not after.
What the file looks like from our side
A MSHDA loan carries a few procedural differences from an ordinary agency loan, and knowing them up front stops them becoming surprises. MSHDA does not accept MERS forms. Private mortgage insurance is acceptable only from MGIC or ARCH, using Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage. A pre-closing compliance review is required, and a Home Inspection Education Disclosure is required on all new loan submissions as of June 1, 2026.
None of that changes whether you qualify. It changes the timeline, which is why we build it into the schedule from the start. Send us the address and the household and we will run the test properly.
Frequently asked questions
What are the requirements for MSHDA down payment assistance?
In order: the address must be in a targeted area or you must be a first-time homebuyer, meaning you have not owned a home in the previous three years; household income must fall under the county limit, which runs from $98,400 to $170,760 for a one to two person household; credit score must be at least 640; the sales price must be at or under $566,355; the home must be owner-occupied; and a housing education class with a certificate of completion for all homebuyers is required.
What credit score do you need for MSHDA in Michigan?
640 is the minimum credit score for the MI Home Loan, which is the first mortgage the MI 10K DPA attaches to. Because the assistance must be combined with a MI Home Loan, the 640 floor governs the whole file. There is no separate, lower score path for the assistance on its own.
How is household size counted for MSHDA income limits?
MSHDA publishes two columns, one for households of one to two people and one for three or more. So the increase happens at the third person and then stops: a household of three, four or six reads the same figure. At the non-targeted floor that means $98,400 for one to two people and $113,160 for three or more.
Does the MSHDA sales price limit stop you buying in expensive parts of Michigan?
Not at typical values anywhere in the state. The limit is $566,355 statewide after June 1, 2026, and the most expensive Michigan metro in Zillow's August 2026 data is Traverse City at a typical value of $422,480, which leaves $143,875 of headroom. Individual homes above the cap exist, but the limit is not what keeps Michigan buyers out of MSHDA.
Does everyone on the loan have to take the homebuyer education class?
For the MI 10K DPA, yes. MSHDA requires a homebuyer education certificate of completion for all homebuyers, not just the first borrower listed, and the MI Home Loan separately requires a housing education class. It is a common reason a file waits at the end, so it is worth starting early rather than treating it as paperwork you do at the close.
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.