Unlock Your Dream Home: MSHDA Raises Purchase Price Limit for Down Payment Assistance

For many aspiring homeowners, the biggest hurdle to homeownership is the down payment. Thankfully, Michigan’s State Housing Development Authority (MSHDA) offers one of the best programs in the state to help overcome that barrier: Down Payment Assistance (DPA). Recent changes to MSHDA’s purchase price limit have opened the door to homeownership for even more Michigan buyers. If you’ve been eyeing the housing market but felt constrained by budget limits, now is your time to act!

What’s New with MSHDA?

In an exciting update, MSHDA has raised the purchase price limit for properties eligible for their Down Payment Assistance program to $510,939. Previously, the limit was $224,500—a cap that left many buyers struggling to compete in markets where the sweet spot for homes is between $250,000 and $300,000.

With this increase, the Down Payment Assistance program now gives buyers access to a much broader range of homes. Whether you’re looking for a starter home or something with a little more space, you’ll now have more options to find the property that fits your needs.

What is Down Payment Assistance?

Down Payment Assistance is a program designed to make homeownership more accessible by providing funds that help buyers cover their down payment and closing costs. MSHDA offers up to $10,000 in assistance for first-time homebuyers across Michigan.

This program is a game-changer for those who may be renting or sitting on the sidelines because saving for a down payment felt out of reach.

How Does Down Payment Assistance Work?

The Down Payment Assistance funds provided by MSHDA are offered as a second mortgage. Here’s how it works:

1. Eligibility Requirements

   • You must be a first-time homebuyer (or not have owned a home in the past three years).
   • You need a minimum credit score of 640 (660 for certain loan types).
   • Household income must fall within MSHDA’s limits, which vary by county and household size.

2. Loan Details

   • The DPA loan is a 0% interest loan with no monthly payments.
   • It’s repayable only when you sell or refinance your home.

3. Homebuyer Education

   • All applicants are required to complete a homebuyer education course from a HUD-approved housing counselor.

Why is the New Purchase Price Limit a Game-Changer?

Michigan’s housing market is dynamic, and the previous $224,500 cap made it challenging for buyers to find suitable homes. Many neighborhoods, especially in cities like Swartz Creek, Grand Blanc, and Davison feature properties in the $250,000–$300,000 range, which was previously out of reach for MSHDA program participants.

With the new $510,939 limit, buyers now have the flexibility to explore homes with updated features, modern layouts, and more space.

Top Benefits of Using Down Payment Assistance with the New Limit

1. Wider Range of Homes: You can now shop for homes in desirable neighborhoods and communities previously out of reach.
2. Competitive Edge: In a tight market, having the flexibility to consider higher-priced properties can make all the difference.
3. Greater Affordability: With MSHDA’s $10,000 Down Payment Assistance, even higher-priced homes can become affordable for first-time buyers.
4. Lower Closing Costs: Many buyers can close on their dream home without depleting their savings, thanks to DPA funds.

Who Benefits from Down Payment Assistance?

Whether you’re a first-time buyer looking to escape the rental cycle or a young family needing more space, MSHDA’s Down Payment Assistance program can be the key to unlocking homeownership. The raised purchase price limit ensures you can find a home that fits your lifestyle without breaking your budget.

Ready to Make Your Move?

If you’ve been holding off on buying a home because of down payment concerns or limited inventory, now is the time to act. MSHDA’s updated Down Payment Assistance program makes it easier than ever to find a home you’ll love while keeping more money in your pocket.

Contact me today to see if you qualify for MSHDA’s Down Payment Assistance program. Together, we can explore your options and find a home that meets your needs and budget. Let’s make your dream of homeownership a reality!

Disclaimer: Program details, including eligibility and income limits, are subject to change. Please consult with a MSHDA-approved lender for the most current information.