Buyer programs · 2026
MSHDA: Michigan's homebuyer programs, explained
In short
MSHDA — the Michigan State Housing Development Authority — is the state agency that helps Michiganders buy their first home. It doesn't lend money itself. It works through approved lenders, pairing a regular mortgage (the MI Home Loan) with up to $10,000 in down payment assistance (the MI 10K DPA). To qualify you generally need a 640 credit score, a household income under your county's limit, and a homebuyer education course.
What is MSHDA?
MSHDA is Michigan's state housing agency. It was created to make homeownership reachable for low- and middle-income residents, and it has run homebuyer programs in the state for decades.
One thing trips people up: MSHDA is not a lender you call. It sets the rules and adds the benefits, and then approved banks, credit unions and mortgage companies actually write the loan.
The two programs that matter
Almost everything MSHDA offers buyers comes down to two pieces that are designed to work together.
MI Home Loan — the mortgage
This is MSHDA's first mortgage: a 30-year fixed FHA, VA, USDA or conventional loan with MSHDA's benefits layered on top. It is mainly for first-time buyers, plus repeat buyers in certain targeted areas. Full detail is on our MI Home Loan page.
MI 10K DPA — the down payment help
Up to $10,000 toward your down payment, closing costs and prepaid escrows. It is a zero-interest second loan with no monthly payment; you repay it only when you sell, refinance or pay off the first mortgage. It is now available statewide, after starting in a limited set of ZIP codes.
Who qualifies for MSHDA in 2026
MSHDA eligibility comes down to a handful of tests. The exact numbers change over time, so treat these as a guide and confirm the current figures with a lender before you count on them.
- Credit score: at least 640 (660 for a conventional loan or a multi-section manufactured home)
- First-time buyer: you haven't owned a home in the last three years — repeat buyers can still qualify in targeted areas
- Income limit: household income under your county's cap, roughly $95,000 to $121,000 in 2026, counted for everyone living in the home
- Sales-price limit: a statewide cap, around $566,000 as of mid-2026 (MSHDA revises it periodically)
- Homebuyer education: a required course you complete before closing
- Primary residence: the home has to be where you actually live
How to apply for a MSHDA loan
- Check the basics — a credit score near 640 or better and income under your county limit
- Find a MSHDA-approved lender (a bank, credit union or mortgage company that offers the MI Home Loan)
- Get pre-approved and complete the required homebuyer education course
- Shop for a home under the sales-price limit that will be your primary residence
- Close, with the MI 10K DPA applied toward your down payment and costs
New to the process? Our step-by-step guide to buying a house in Michigan and the pre-approval guide cover what happens at each stage.
Is a MSHDA loan worth it?
For a buyer who is short on down-payment cash but otherwise qualifies, MSHDA is one of the strongest deals in Michigan. Ten thousand dollars you pay no interest on is hard to beat.
The trade-offs are real, though. The assistance is a lien you repay on sale or refinance, the rate on the MI Home Loan is not always the very lowest on the market, and the income and price caps rule out higher earners and pricier homes. It is worth comparing a MSHDA offer against a plain FHA or conventional loan.
Frequently asked questions
What is MSHDA?
MSHDA is the Michigan State Housing Development Authority, the state agency that helps residents buy and keep homes. For buyers it offers the MI Home Loan mortgage plus up to $10,000 in down payment assistance, delivered through approved lenders rather than by the state directly.
What's the difference between the MI Home Loan and the MI 10K DPA?
The MI Home Loan is your actual mortgage. The MI 10K DPA is up to $10,000 of down payment and closing-cost help that rides on top of it. You use the two together.
What credit score do I need for MSHDA?
Generally 640, or 660 for a conventional loan or a multi-section manufactured home. That is higher than FHA's floor, so it is worth checking your score early and giving yourself time to improve it if needed.
What are the MSHDA income limits?
They vary by county and household size — roughly $95,000 to $121,000 in 2026 — and they count everyone living in the home. See our MSHDA income and price limits page, and confirm the current figure with a lender.