Michigan’s housing market is about to get a major boost, and it’s not just for first-time buyers.
The Michigan State Housing Development Authority (MSHDA) is ready to launch a huge update. House Bill 5032 has passed both the Michigan House and Senate. Now, it’s sitting on Governor Gretchen Whitmer’s desk. Once signed, this change could help thousands of Michiganders achieve their dream of owning a home.
Higher Purchase Price Limits
For the first time since 2009, MSHDA is raising its purchase price limits. The new cap will be 90% of the IRS’s safe harbor limits for Mortgage Revenue Bonds. What does this mean?
Buyers could soon qualify for homes priced up to $510,939 for single-family properties. That’s more than double the current cap of $224,500!
MSHDA will still have income limits that vary by area. These limits could affect maximum approvals, but the higher cap gives buyers more options. This change reflects today’s housing prices and keeps MSHDA in line with federal standards.
Why it Matters
First-time buyers: Buyers can now consider homes that were out of reach before. This opens up a much bigger range of choices.
Repeat buyers: In 82% of Michigan, repeat buyers can also qualify for MSHDA programs. Families and individuals looking for their next home will benefit from this update, not just first-time buyers.
Works with All Major Loans
MSHDA works with Conventional, FHA, RD (Rural Development), and VA loans. This means buyers get the benefits of these programs without extra hassle. Buyers get flexibility, great rates, and more resources to meet their needs.
No delays: When working with an experienced lender, MSHDA loans don’t slow the process. Mortgage 1, Michigan’s #1 MSHDA lender for 12 years, has closed these loans in as little as 12 days.
Smooth process: For example, a Conventional MSHDA loan follows the same appraisal process as a regular conventional loan.
More Than Down Payment Assistance
MSHDA is known for its $10,000 Down Payment Assistance (DPA), but there are other great programs:
MI Home Loan: This program, available to first-time and repeat buyers in certain areas, offers competitive rates (currently 5.75%, APR 5.863%*). A great option for those who don’t need down payment help.
Mortgage Credit Certificate (MCC): Eligible buyers can claim a 20% federal tax credit on their mortgage interest (up to $2,000 per year). This increases take-home pay and borrowing power.
What’s Next?
These changes could start by April 2025. MSHDA will update its limits every year after to match market conditions.
Why It’s Historic
This is more than just a policy update—it’s a game-changer. Michigan’s old price limits didn’t match the realities of today’s housing market. With this update, MSHDA is helping more people buy homes that meet their needs.
For buyers, sellers, and real estate professionals, this is a huge opportunity. Get ready for a brighter future in Michigan’s housing market. Stay tuned as this exciting change moves forward. The best is yet to come
*The annual percentage rate (APR) quoted above represents a typical $99,200 FHA-insured, fixed rate loan on a $100,000 home with a down payment of $2,250 and financed Upfront Mortgage Insurance Premium (UFMIP). This APR is based on a 1% origination fee, 15 days interest adjustment and $220 for loan closing fee. Please note that the actual APR may vary depending upon the Mortgage Loan Fees the participating lender charges the borrower.