The MI Home Loan, and Why Its Rules Govern Everything
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
People shop for the assistance and inherit the first mortgage. It is worth doing it the other way round, because the first mortgage is where the rules live.
Who the MI Home Loan is for
MSHDA describes it as available to first-time homebuyers statewide and repeat homebuyers in targeted areas. That is the same split the limits sheet's legend states, read from the program's side instead of the table's.
The practical consequence: in the 66 counties targeted end to end, prior ownership is not a question at all. In the 17 split counties it depends on the city or township, and outside a targeted place the three-year test applies. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
The three-year look-back
MSHDA's definition is having not owned a home in the previous three years. It is a window, not a lifetime status, so plenty of people who would never call themselves first-time buyers meet it. The test in detail.
Credit and price
| Requirement | MSHDA | Comment |
|---|---|---|
| Minimum credit score | 640 | Applies to the file, so it gates the assistance too |
| Sales price limit | $566,355 | One number statewide after June 1, 2026 |
| Income limit | County and status specific | $98,400 to $170,760 for 1–2 people |
| Education | Housing education class | Certificate of completion for all homebuyers on the DPA |
The sales price limit is unusually simple. Most state housing agencies publish a grid of price limits by county and target status; MSHDA publishes $566,355 on all 99 rows. Why that single number matters.
Where the conforming limit sits
All 83 Michigan counties are at the 2026 national baseline conforming loan limit of $832,750 for one unit and $1,066,250 for two. No Michigan county is designated high cost.
So the conforming limit is never the binding constraint on a MSHDA file. MSHDA's own $566,355 sales price cap sits well below it and bites first.
Four procedural differences to plan for
These come from the approved lender guideline and none of them decide whether you qualify. They decide how the file moves, which is worth knowing when you are negotiating a closing date.
- MSHDA does not accept MERS forms.
- Private mortgage insurance from MGIC or ARCH only, using the Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage product. That narrows the product choice on the conventional side.
- Pre-closing compliance review required. MSHDA reviews the file before it closes, so the calendar has an extra step in it.
- Home Inspection Education Disclosure required on all new loan submissions as of June 1, 2026.
We build all four into the timeline at the start. A MSHDA file that is treated like an ordinary agency file is a MSHDA file that closes late.
Next
The assistance that attaches to this loan · with FHA · with conventional · the full eligibility test.
Frequently asked questions
What is the MI Home Loan?
It is MSHDA's first mortgage, and the loan the MI 10K DPA assistance must be combined with. MSHDA makes it available to first-time homebuyers statewide and to repeat homebuyers in targeted areas, with a minimum credit score of 640, a sales price limit of $566,355 after June 1, 2026, county income limits, and a required housing education class.
Does the MI Home Loan have a credit score minimum?
Yes, 640. Because the MI 10K DPA must be combined with a MI Home Loan, that 640 minimum governs the whole file and there is no lower-score route to the assistance on its own. Credit score is only one part of the decision, so a 640 score does not by itself mean an approval.
What is the conforming loan limit in Michigan for 2026?
All 83 Michigan counties sit at the national baseline of $832,750 for a one-unit property and $1,066,250 for two units. No Michigan county is designated high cost. On a MSHDA file the conforming limit is not the binding constraint anyway, because MSHDA's own sales price limit of $566,355 is well below it.
Does MSHDA accept any mortgage insurance company?
No. The approved lender guideline states that private mortgage insurance is acceptable only from MGIC or ARCH, and only using the Fannie Mae HFA Preferred or Freddie Mac Home Possible Advantage product. That narrows the conventional product choice, which is one reason the FHA and conventional comparison on a MSHDA file is not the same comparison as on an ordinary loan.
Why does a MSHDA loan take longer to close?
Mainly the pre-closing compliance review: MSHDA reviews the file before it closes, which adds a step an ordinary agency loan does not have. 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 these affect whether you qualify, but all of them affect the calendar, so they belong in the schedule from day one.
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.