MSHDA Rates & Programs 2026: MI Home Loan + the Midwest's Biggest $10K DPA
Michigan State Housing Development Authority pairs a below-market first mortgage with a flat $10,000 deferred DPA at 0% — the largest flat DPA in the Midwest — plus a first-generation pilot up to $25K. One statewide price cap keeps the math simple; it\'s also where deals die in pricey suburbs.
Check Your MSHDA Eligibility — Free
Below-market rate + $10K DPA + price cap check. 2 minutes, no credit pull.
~6.25-6.75%
MI Home Loan Rate
below market
$10,000
MI 10K DPA
0% deferred
~$225K
Price Cap
flat statewide
640
Min Credit
all programs
All MSHDA Programs — October 2026
| Program | Rate | DPA | Min Credit | Repayment |
|---|---|---|---|---|
| MI Home Loan (FHA/Conv/RD/VA) 🏆 FLAGSHIP | ~6.25-6.75% | Pairs with MI 10K DPA | 640 | 30-yr fixed first mortgage |
| MI 10K DPA 💰 BIGGEST IN MIDWEST | 0% deferred | $10,000 flat | 640 | Deferred — repay on sale/refi/payoff |
| MI Home Loan Flex 🔧 FLEXIBLE | ~6.4-6.9% | Smaller DPA options | 640 | Flexible structure for repeat/targeted |
| First-Gen DPA (pilot) 🌱 PILOT | 0% deferred | Up to $25,000 | 640 | First-generation buyers — funding-limited |
Who Qualifies?
First-Time (3-yr rule) or Targeted Area
ONE Statewide Price Cap (~$225K)
County Income Limits
640+ Credit
Homebuyer Ed Required
MSHDA-Approved Lenders Only
5 MSHDA Gotchas
1. The flat price cap is the real gate
One statewide cap (~$225K) means Ann Arbor and the UP share the same ceiling. In Oakland or Washtenaw's hotter pockets, eligible-income buyers get bounced on price — check the cap before the tour.
2. Deferred DPA wakes up at refi
The $10K second comes due when you refinance, not just sell. Planning to refi when rates drop? Factor the $10K payoff into the savings math.
3. First-Gen pilot funding runs out
The up-to-$25K first-generation DPA is allocation-limited — windows open and close. Never write an offer counting on it until your lender confirms current funding.
4. Homebuyer ed BEFORE purchase agreement
MSHDA requires a HUD-approved education certificate — and timing matters. Do the course before you're under contract, not after.
5. Approved lender list is narrow
Fewer lenders do MSHDA volume than in most states. An LO who processes MI Home Loans weekly closes cleaner than one doing their first file — ask how many they've closed this quarter.
Frequently Asked Questions
Q1. What is the MSHDA rate in October 2026?
MSHDA posts one statewide rate for MI Home Loan — roughly 6.25-6.75% as of October 2026, typically 0.25-0.5% under standard market. Identical at every participating lender; only lender fees and speed differ. Verify the posted rate at michigan.gov/mshda.Compare MI lender rates — free →
Q2. How much is the MI 10K DPA?
$10,000 flat — the largest single flat DPA among Midwest state agencies — as a 0% deferred second mortgage. No interest, no monthly payment; it comes due only when you sell, refinance, or pay off the first mortgage. On a $200K Michigan starter home that's the entire 3.5% FHA down payment plus closing-cost help.
Q3. What is the MSHDA sales price limit?
ONE statewide cap (~$224,500-ish, revised periodically) — unusually simple: no county table. The catch in 2026: Michigan's median price has pushed near that ceiling, so in Ann Arbor, Birmingham, or Grand Rapids suburbs, the price cap can kill eligibility before income does.Check my eligibility — free →
Q4. Do I need to be a first-time buyer for MSHDA?
MI Home Loan requires it (no ownership in 3 years) — except in federally targeted areas where the rule waives, and for the Flex structure which accommodates some repeat scenarios. Veterans keep standard VA pathways separately.
Q5. What are MSHDA income limits?
County-specific, roughly $90K-$130K household income depending on county and household size — Oakland/Washtenaw top the table, rural counties lower. MSHDA counts household income (all 18+ occupants), same as CalHFA/IHDA. Verify your county at michigan.gov/mshda.
Q6. Is the $25K First-Gen DPA real?
Yes — MSHDA's first-generation homebuyer pilot offered up to $25,000 for buyers whose parents never owned a home. It's FUNDING-LIMITED: windows open and close when allocations run out. Check current availability before counting on it — the standard $10K DPA is the reliable base.See current DPA options →
Related Michigan & DPA Guides
$10K Deferred at 0% — the Midwest's Biggest Flat DPA
Below-market rate + $10K toward down and closing. Check income, credit, and the price cap in one pass.