Saving enough for a down payment can be a challenge, especially if you’re tied to a lease where rent is continually on the rise. The good news is there are Down Payment Assistance programs to help overcome this obstacle. One of these programs being MSHDA DPA loans offered by the Michigan State Housing Development Authority.
A common misconception is that MSHDA loans are only for low-income borrowers. However, the income limits for MSHDA are actually quite generous. And as of May 1st, 2024, MSHDA announced a new income limit increase. Eligible income for 1-2 applicants ranges from $91,200 to $149,760 statewide. Before we take a closer look at these new limits, first let’s cover some of the MSHDA basics.
What does the MSHDA DPA Loan Offer?
MSHDA is helps make homebuying more attainable by removing a common barrier for borrowers: the down payment. MSHDA provides 10k in down payment assistance as a loan. The borrower is then required to contribute 1% of the home’s purchase price.
Is MSHDA Only For First Time Buyers?
Another common misconception about MSHDA loans is that you must be a first time buyer to qualify. Although the MSHDA DPA is popular among first time buyers, repeat buyers qualify for down payment assistance in targeted areas. Also, in order for repeat buyers to qualify, they must not have owned a home in the last three years.
MSHDA’s New 2024 Income Limits
MSHDA’s income limits vary from county to county and are based on total household income. There are targeted and non targeted limits for each area. This is why you will see two listings for each county. These targeted areas are for repeat buyers as mentioned earlier.
Below are the new income limits for Oakland, Macomb and Wayne counties. These limits are based on either one income or two combined incomes. All adults who intend on living in the home must co-apply. MSHDA is offered statewide, so if you would like information on other counties or limits with 3 or more combined incomes, reach out to Julie Krumholz at: 586-382-5482.
MSHDA DPA New Income Limits as of May 1st 2024
Macomb County, Targeted: $115,080
(Harrison Twp, City of Mt Clemens)
Macomb County, Non-Targeted: $95,900
(all remaining cities in county)
Oakland County, Targeted: $115,080
(City of Pontiac, Royal Oak Twp, City of Southfield)
Oakland County, Non-Targeted: $95,900
(all remaining cities in county)
Wayne County, Targeted: $115,080
(City of Detroit, City of Dearborn, City of Ecorse, City of Hamtramck, City of Inkster, City of Highland Park, Lincoln Park, River Rouge, City of Taylor, City of Wayne)
Wayne County, Non-Targeted: $95,900
(all remaining cities in county)
This recent income limit increase is great news for previous applicants who may have met all MSHDA requirements but could not qualify because their income exceeded the limit.
Are There Any Other Requirements for a MSHDA Loan?
Some other qualifications include:
- A minimum credit score of 640 is required
- The sales price limit of the new home is $224, 500
- Borrowers must contribute a minimum of 1% of the sales price
- Homebuyer Education Class is required
Read More: What Are the Requirements for a MSHDA Loan?
Get Started With a MSHDA Down Payment Assistance Loan
If you’re interested in the MSHDA DPA loan, you will need to consult with a MSHDA approved lender and not all lenders are approved for this type of loan product. Julie Krumholz from Superior National Bank is a MSHDA approved lender with over 30 years of experience in the mortgage industry.
Julie uses her wealth of experience to match homebuyers with the best mortgage program for their specific needs and helps streamline the homebuying process.
