The Property Side of a MSHDA File
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
The property rules on a MSHDA file are short. The one that outlives closing is the one worth reading twice.
Price: one number
$566,355 after June 1, 2026, everywhere in Michigan. No county grid, no targeted and non-targeted split on price. It is the simplest test in the program, and with the state's most expensive metro at a typical value of $422,480 it has $143,875 of headroom at typical values. More on the price limit.
Occupancy: the requirement with a tail
The home has to be your residence, and unlike the price and income tests this one is not finished when you sign. 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.
So the occupancy rule is a property rule and a financing rule at once. Anyone whose plan involves converting the house to a rental later should read the owner-occupancy page before choosing this financing.
The inspection education disclosure
As of June 1, 2026, MSHDA requires a Home Inspection Education Disclosure on all new loan submissions. It is a disclosure about inspections rather than a requirement to have one, and it is a recent addition, so if you read an older Michigan DPA article it will not be mentioned.
Practically it is a form in your package. We flag it because a missing recent disclosure is a classic reason a file sits, and because it tells you something useful: MSHDA cares that buyers understand the inspection decision.
What we will not do is coach you on inspection contingencies or how to negotiate repairs. We are lenders. Those are questions for your real estate agent and, where they are legal questions, your attorney.
Loan limits
All 83 Michigan counties sit at the 2026 national baseline conforming loan limit of $832,750 for one unit and $1,066,250 for two. No Michigan county is high cost.
On a MSHDA file that limit never binds, because MSHDA's own $566,355 sales price cap is well underneath it. It is worth knowing anyway, because a buyer who outgrows MSHDA on price has a lot of conventional room above it.
Appraisal and condition
The appraisal governs value and, depending on the agency product under the loan, may flag condition items that have to be addressed before closing. FHA and conventional handle that differently, which is one of the practical differences between the two routes.
We read the appraisal, tell you what it means for the loan, and tell you plainly when something is outside what we can resolve. FHA route · conventional route.
What this page deliberately does not tell you
We do not publish a list of acceptable property types, unit counts or condominium project criteria for MSHDA. Those rules live in the operating guideline, they get updated, and a stale list on a lender's website is how people end up under contract on something that will not finance.
Tell us the address and the property type and we will read the current guideline against it. That is a five minute answer and it is right, which beats a page that was right in March. Ask us.
Frequently asked questions
What kind of home can you buy with MSHDA assistance?
An owner-occupied home at or under the $566,355 statewide sales price limit. Beyond that, acceptable property types, unit counts and condominium criteria come from MSHDA's operating guideline and the agency product under the loan, and those rules get updated, so the reliable answer comes from reading the current guideline against a specific address rather than from a published list.
Can you use MSHDA for an investment property in Michigan?
No. The home has to be owner-occupied, and MSHDA treats occupancy as an ongoing condition rather than a closing-day box: the MI 10K DPA becomes repayable when the home is no longer owner-occupied. So the program is not available for a rental purchase, and converting a MSHDA-financed home to a rental later triggers repayment of the assistance.
What is the Home Inspection Education Disclosure?
A disclosure MSHDA requires on all new loan submissions as of June 1, 2026. It concerns buyer education about home inspections rather than mandating an inspection, and it is a recent enough addition that older Michigan DPA articles do not mention it. In practice it is a form in your loan package, and a missing recent disclosure is a common reason a file waits.
What is the conforming loan limit in Michigan?
$832,750 for a one-unit property and $1,066,250 for two units, the 2026 national baseline, in all 83 Michigan counties. No Michigan county is designated high cost. On a MSHDA file it never binds, because MSHDA's own sales price limit of $566,355 sits well below it.
Does MSHDA require a home inspection?
What MSHDA requires as of June 1, 2026 is a Home Inspection Education Disclosure on all new loan submissions, which is about making sure buyers understand the inspection decision. Separately, the appraisal for the agency product under your loan may flag condition items that have to be addressed before closing, and FHA and conventional handle that differently. We read the appraisal and tell you what it means for the loan.
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.