If You're Buying in Michigan This Year, Read This First

If you're a first-time buyer in Michigan, you have access to programs most people don't know about — programs that can put thousands of dollars toward your down payment and closing costs. But there are rules, limits, and things that have changed recently that you need to understand before you start shopping.

Here's what you actually need to know in 2026.

The MSHDA Program — What It Is and Who Qualifies

MSHDA stands for Michigan State Housing Development Authority. They run a bond-backed mortgage program that offers below-market rates AND up to $10,000 in down payment assistance for qualifying buyers.

That $10,000 is a second mortgage — not a grant — but it's 0% interest with no monthly payment. You only repay it when you sell, refinance, or pay off the home. For most first-time buyers, that's effectively free money at closing.

Who Qualifies

MSHDA has income and purchase price limits that vary by county. In Oakland County the income limits are higher than in many other areas, which means more buyers qualify than people expect. General requirements include:

You must be a first-time homebuyer (or not have owned a home in the past 3 years). The home must be your primary residence. Your credit score typically needs to be 640 or higher. Income limits apply — they vary by household size and county. There are also purchase price limits.

MSHDA in a Competitive Offer Situation

Here's something agents and buyers don't always think about: MSHDA offers can compete. The key is having a fully processed pre-approval, not just a pre-qualification. When I submit a pre-approval for a MSHDA buyer, the seller's agent knows the financing is real and the deal will close.

I've helped buyers using MSHDA win in multiple-offer situations. The program doesn't have to be a weakness — it just needs to be handled right.

Other Programs Worth Knowing

Beyond MSHDA, there are FHA loans at 3.5% down (great for buyers with credit scores in the 640-680 range), conventional loans at 3% down, and VA loans for veterans and active military with zero down and no PMI. Each has different tradeoffs and the right one depends entirely on your situation.

What to Do Next

The first step is a real conversation about your numbers — income, credit, savings, and timeline. Most of the time I can tell you within 20 minutes what programs you qualify for and what your actual payment would look like on the homes you're considering.

There's no pressure and no obligation. Just clarity.