Few updates have been as exciting for Michigan homebuyers as this one. Starting May 1, 2025, the Michigan State Housing Development Authority (MSHDA) has officially increased the maximum eligible home price for their Down Payment Assistance (DPA) program. For the first time in 16 years, the sales price cap is getting a major boost — from $224,500 all the way up to $510,939 for single-family properties.
That’s not just a minor adjustment — it’s more than double the previous limit. And for many buyers, it could be the difference between settling and securing a home they truly love.
Why This Change Matters for Buyers
In recent years, Michigan’s housing market has evolved rapidly. It’s no secret that finding a quality home under $225,000 had become nearly impossible, especially in more desirable communities where entry-level homes often fall in the $250,000 to $300,000 range.
The outdated price cap left many qualified buyers stuck on the sidelines — able to meet income qualifications, but unable to find homes that fit within the program’s limits.
With the new $510,939 ceiling, MSHDA’s Down Payment Assistance is finally catching up with the reality of today’s market. This gives buyers a real chance to shop for updated homes with modern layouts, larger yards, and features that meet today’s needs, rather than settling for properties that may need costly repairs or updates.
Key Benefits of the New Higher Limit
Here’s what today’s buyers stand to gain:
Access to More Homes: Buyers are no longer boxed into the lowest tier of listings. This opens the door to homes in better neighborhoods, with better schools, and in locations closer to jobs and amenities.
Better Position in a Competitive Market: With the flexibility to look at higher-priced homes, buyers can better compete against conventional buyers who have been operating without MSHDA restrictions.
Affordability Still in Reach: Even though homes may be higher priced, MSHDA’s $10,000 in down payment assistance can make those homes surprisingly affordable, helping buyers stretch their budgets responsibly.
Preserving Savings: Thanks to DPA funds, many buyers can reserve their personal savings for moving expenses, emergency funds, or future upgrades instead of exhausting them at closing.
A Few Important Notes About Eligibility
While the purchase price limit has expanded dramatically, there are a few key details borrowers need to be aware of:
Both income and sales price limits must still be met to qualify for MSHDA programs. Even if the home falls within the $510,939 limit, your household income must meet program guidelines as well.
Income limits have changed too — and they now vary more noticeably depending on your county.
In some areas, income limits have actually decreased compared to last year, so it’s crucial to check the updated guidelines for your specific location.
Transition period tip: If your income qualifies under the previous year’s limits but not under the new ones, there’s a small window of opportunity. Loans using the old income limits must close no later than June 30, 2025 to still be eligible for MSHDA to purchase. If you fall into this category, time is of the essence.
What This Means for You
If you’ve been feeling priced out of homeownership, this change could be the green light you’ve been waiting for. Whether you’re a first-time buyer, returning to the market after a few years, or helping a family member get started, the expanded sales price limit greatly broadens the pool of homes you can consider.
It allows buyers to purchase homes that better fit their needs, reduces the need for costly renovations right out of the gate, and gives buyers a stronger foothold in their communities.
Contact MSHDA Lender, Julie Krumholz – Superior National Bank
If you’re considering buying in 2025, don’t miss out on the expanded opportunities now available under the new guidelines. If you have questions about your eligibility, income limits in your area, or how to get started, reach out to Julie Krumholz from Superior National Bank.
Julie Krumholz is an MSHDA-approved lender with over 30 years of experience in the mortgage industry. She’s experienced nearly every facet of the mortgage industry, from processing, closing, loan origination, underwriting, QC auditing, and even co-owning a mortgage brokerage firm. Julie uses her wealth of experience to match homebuyers with the best mortgage program for their specific needs and helps streamline the homebuying process.
