MSHDA Down Payment Assistance Options

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The Michigan State Housing Development Authority (MSHDA), established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues.

MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. Proceeds of the bonds and notes are loaned at below-market interest rates to fund home mortgages and home improvement loans. MSHDA also administers various federal housing programs.




Who Can Get a MSHDA-DPA Loan in Michigan?

MSHDA Down Payment Assistance (DPA) loans were created for low-to-moderate income households, to provide down payment assistance, or a mortgage interest credit. MSHDA-DPA loans assist first-time homebuyers. Income limits apply. Income limits are County based.

Some candidates for an MSHDA -DPA loans in Michigan include people who:

  • Have less than perfect credit history
  • Need help with down payment assistance
  • Want flexible term options with a fixed interest rate
  • Can benefit from a low-down payment loan program (as low as 1%)
  • Have filed for bankruptcy or foreclosure in the past (with stipulations)

Features of the MSHDA-DPA Loans!

  • Down Payment Assistance up to $7,500
  • Available to first time homebuyers (have not owned a home in the past 3 years) statewide, and repeat homebuyers, in targeted areas.
  • Sellers may contribute to the buyer’s closing costs
  • All members of the household, over the age of 18, must be applicants for the mortgage
  • Homebuyer Education Class is required for all applicants.
  • Minimum credit score is 640
  • Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability. A tax credit is a dollar for dollar reduction in tax liability
  • Maximum Sales Price, in all Michigan Counties is $224,500
  • Tax credit is allowed every year for the life of the original mortgage


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John Higgins

NMLS #136061 Mobile: 248.895.7272

Mortgage 1, Inc.

43456 Mound Road
Sterling Heights, MI 48314

Contact Me Today

Let's find you the right home at the right price.