Lake State Mortgage home
Text Shelby

Shelby Weller

Mortgage Loan Officer

Michigan Exclusive

MSHDA Loans

State-sponsored down payment assistance offering up to $10,000 for Michigan homebuyers. Stop renting and start building wealth.

Apply for MSHDACheck Eligibility
$10K
Max Assistance
640+
Minimum Credit Score
0%
Interest on Assistance Loan
$566,355
Maximum Purchase Price

How MSHDA Works

The Michigan State Housing Development Authority (MSHDA) helps low-to-moderate income residents buy homes. The program works by pairing a standard first mortgage (like FHA, RD, or Conventional) with a silent second mortgage for the down payment.

  • The Assistance LoanMSHDA provides up to $10,000 as a 0% interest, non-amortizing second loan. There are no monthly payments on this assistance.
  • RepaymentThe assistance loan must be repaid when you sell the home, refinance, or pay off the first mortgage. Until then, it just sits silently against the home.
  • Targeted AreasIf you buy in specific Targeted Areas, the requirement to be a first-time homebuyer is waived.

Program Rules

1% Minimum Investment

You must contribute at least 1% of the purchase price from your own funds (can be earnest money deposit).

Income Limits

Household income cannot exceed specific limits based on county and family size, typically ranging from approximately $91,000 to over $140,000+.

First-Time Buyer Requirement

Unless buying in a Targeted Area, you cannot have owned a primary residence in the last 3 years.

Homebuyer Education

You must complete an approved homebuyer education class before closing.

MSHDA FAQs

Yes. Unlike a grant, this is a loan. However, it accrues no interest and requires no monthly payments. It simply sits as a lien against the house until you sell or refinance. At that point, you pay back exactly what you borrowed out of the equity.

MSHDA is compatible with FHA, VA, USDA, and Conventional loans. The underlying rules of that first mortgage still apply (e.g. FHA appraisals, VA military service).

Yes. If you use MSHDA down payment assistance, your first mortgage must use the state's daily MSHDA interest rate, which is set by the state authority, not the lender.

Rate dated 02/11/2026 — subject to change at any time

As of 02/11/2026, the MI Home Loan with up to $10,000 in down payment assistance has an interest rate of 6.375%, subject to change at any time.