MSHDA MI Home Loan
A Michigan first-time buyer program built to help you close.
The MSHDA MI Home Loan is a 30-year fixed-rate mortgage from the Michigan State Housing Development Authority, designed to help eligible first-time buyers (and repeat buyers in targeted areas) close on a home in Michigan. Its biggest advantage: it pairs with MSHDA Down Payment Assistance of up to $10,000 (or up to $25,000 in designated communities like Detroit).
What is the MSHDA MI Home Loan?
The MSHDA MI Home Loan is a state-sponsored 30-year fixed-rate mortgage offered through approved Michigan lenders. Belong Lending is an approved MSHDA lender.
The loan can be structured as a Conventional, FHA, VA, or USDA loan — MSHDA is the wrapping around one of those government or GSE programs. That means the underlying underwriting still follows FHA, VA, USDA, or Conventional rules; MSHDA layers state benefits on top.
MSHDA Down Payment Assistance
The most valuable piece of MSHDA is the Down Payment Assistance (DPA) loan. Standard MSHDA DPA offers up to $10,000, and MSHDA MI 10K DPA offers up to $10,000 in designated communities. The Michigan First-Generation DPA program can offer up to $25,000 for eligible first-generation buyers, and there are $25,000 DPA options for buyers in designated communities like Detroit.
The DPA is structured as a 0% interest, non-amortizing second-lien loan — no monthly payment required. It becomes due when the home is sold, refinanced, or when the first mortgage is paid off.
Eligibility
MSHDA MI Home Loan is generally for first-time buyers (no primary residence ownership in the past 3 years), with limited exceptions for repeat buyers in designated Targeted Areas. Household income limits apply and vary by county and household size. Sales price limit for 2026 is $544,233 statewide.
Homebuyer education is required for MSHDA borrowers and can be completed online in a few hours.
Key benefits
- Michigan-specific 30-year fixed rate mortgage
- Pairs with MSHDA Down Payment Assistance up to $10,000 (or up to $25,000 in select programs)
- DPA is a 0% interest, no-monthly-payment second lien
- Can be structured as Conventional, FHA, VA, or USDA
- Sales price limit of $544,233 (2026) covers most Michigan markets
- Available to repeat buyers in designated Targeted Areas
Who this loan fits best
- Michigan first-time buyers who need down payment assistance
- First-generation buyers who qualify for the $25K DPA program
- Buyers in designated Michigan communities eligible for enhanced DPA
- Repeat buyers purchasing in MSHDA Targeted Areas
Estimate your monthly payment
MSHDA MI Home Loan payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with MSHDA MI Home Loan loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
Who qualifies for the MSHDA MI Home Loan?
MSHDA MI Home Loan is generally for first-time buyers — meaning no primary residence ownership in the past 3 years — with a household income under the county-specific MSHDA income limits and a credit score of at least 640. Repeat buyers may qualify in designated Targeted Areas.
How much down payment assistance can I get from MSHDA?
Standard MSHDA DPA offers up to $10,000. The MI 10K DPA program offers up to $10,000 in designated communities. First-generation buyers may qualify for up to $25,000 through the Michigan First-Generation DPA program. Belong Lending checks all DPA options during your pre-approval.
Do I have to pay the MSHDA DPA back?
The MSHDA DPA is structured as a 0% interest, non-amortizing second lien — no monthly payment. It becomes due when the home is sold, refinanced, or when the first mortgage is paid off. In effect, it is a loan you don't make payments on until one of those events triggers.
What is the MSHDA sales price limit?
For 2026, the MSHDA sales price limit is $544,233 statewide. That covers the majority of Michigan markets including most homes in Metro Detroit, Grand Rapids, Lansing, and Ann Arbor.
Do I have to take a homebuyer education class for MSHDA?
Yes. MSHDA requires homebuyer education for all borrowers. The class is usually online, takes 4 – 8 hours to complete, and is free or low-cost. Belong Lending points you to approved providers.