Owned Before? You Still Qualify Across Most of Michigan
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
If you have owned a home before, the honest answer in Michigan is not no. It is: it depends on the address, and most addresses say yes.
What the rule actually says
MSHDA publishes one legend at the foot of its income limits table and that legend decides your case. Non-targeted areas: must be a first-time homebuyer. Targeted areas: may be a first-time homebuyer or repeat homebuyer.
The MI Home Loan program page states the same eligibility from the program's side: available to first-time homebuyers statewide, and to repeat homebuyers in targeted areas.
Two documents, one conclusion. Prior ownership disqualifies you in a non-targeted area and is irrelevant in a targeted one.
How likely is the address targeted?
| Counties | Status | A repeat buyer |
|---|---|---|
| 66 | Targeted end to end | Qualifies anywhere in the county |
| 17 | Split by city and township | Depends on the address |
Two thirds of Michigan's counties, every address. The county picture.
The catch is the seventeen. They hold Detroit, Grand Rapids, Flint, the Lansing suburbs, Oakland, Macomb and Ottawa, which is to say most of the state's households. In those counties MSHDA names the targeted places one at a time, so the answer turns on the specific address rather than the metro. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
A repeat buyer is not a second-class applicant
This is worth stating because people assume otherwise. Where a repeat buyer is eligible, nothing about the deal shrinks. Same MI 10K DPA of up to $10,000, same interest-free terms, same absence of monthly payments, same 640 minimum score, same $566,355 sales price limit.
The targeted income limits are in fact higher than the non-targeted ones, by $19,680 at the floor for a one to two person household and $24,600 for three or more. So the repeat buyer in a targeted area is working with a more generous income test than the first-time buyer down the road in a non-targeted township.
If the address turns out to be non-targeted
Then the three-year test applies, and it is more forgiving than the phrase first-time buyer sounds. MSHDA defines a first-time homebuyer as someone who has not owned a home in the previous three years. Owning a home in 2019 and renting since does not disqualify you. How the three-year test works.
Which means there are really three outcomes, not two: targeted address and you qualify regardless; non-targeted address and you have been out of ownership three years, and you qualify; non-targeted address and you sold recently, and MSHDA is closed to you for now.
One thing to settle before you buy
Repeat buyers often already own something, or plan to. Read the repayment trigger before you assume you can keep both. MSHDA defers MI 10K DPA repayment until payoff, sale, refinance, or when the home is no longer owner-occupied. Why that clause matters.
Next: the full eligibility test, the income limits, or send us the address and we will check its status.
Frequently asked questions
Can a repeat buyer get MSHDA down payment assistance in Michigan?
Yes, in a targeted area. MSHDA's limits sheet states that targeted areas may be a first-time homebuyer or repeat homebuyer, and the MI Home Loan program page describes eligibility as first-time homebuyers statewide plus repeat homebuyers in targeted areas. Because 66 of Michigan's 83 counties are targeted in their entirety, a repeat buyer qualifies across most of the state map. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
Do repeat buyers get less down payment assistance than first-time buyers in Michigan?
No. Where a repeat buyer is eligible the terms are identical: up to $10,000 from the MI 10K DPA, interest-free, with no monthly payments, a 640 minimum credit score and the same $566,355 sales price limit. The targeted income limits that apply to repeat buyers are actually higher than the non-targeted ones, by $19,680 at the floor for a one to two person household.
I sold my house last year. Am I locked out of MSHDA?
Only if you buy in a non-targeted area. In a targeted area prior ownership does not matter at all. In a non-targeted area MSHDA's first-time homebuyer definition applies, which is not having owned a home in the previous three years, so a sale last year would disqualify you there until three years have passed. Targeted-area status is determined by MSHDA at city and township level and must be confirmed for the specific address.
Does owning a rental property count against me for MSHDA?
MSHDA's first-time homebuyer definition turns on not having owned a home in the previous three years, so current or recent ownership of residential property is the thing being tested and you should expect it to be examined in a non-targeted area. In a targeted area the first-time requirement does not apply, which removes the question. Send us the details and we will read it against the current guideline rather than guess.
Which is better for a repeat buyer, a targeted or non-targeted address?
A targeted address, on both counts that matter. It removes the first-time homebuyer requirement entirely, and it raises the income limit, by $19,680 at the floor for a one to two person household and $24,600 for three or more. Washtenaw County is targeted in its entirety and carries the state's highest limits at $170,760 and $199,220.
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.