House Bill 5032 is officially becoming a law, but what's changing?
A legislative milestone 16 years in the making is set to reshape Michigan’s housing landscape, making homeownership more accessible and affordable for a broader range of buyers. The increased purchase price limits and expanded eligibility criteria mean that more Michiganders can find homes that meet their needs without being priced out of the market.
Increased Purchase Price Limits: For the first time since 2009, MSHDA will raise its maximum purchase price limit. The new cap will be set at 90% of the IRS’s safe harbor limits for Mortgage Revenue Bonds, increasing the maximum eligible home price to $544,233 for single-family properties—more than double the previous limit of $224,500.
Broadened Eligibility: This update isn’t just for first-time buyers. In 82% of Michigan, repeat buyers can also qualify for MSHDA programs, providing expanded opportunities for families and individuals seeking their next home.
Integration with Major Loan Types: MSHDA’s programs seamlessly combine with Conventional, FHA, RD (Rural Development), and VA loans, offering buyers flexibility, competitive rates, and additional resources without extra hassle.
Efficient Processing with Experienced Lenders: Partnering with seasoned lenders like Mortgage 1—ranked as Michigan’s #1 MSHDA lender for 12 consecutive years—ensures a smooth, efficient transaction. MSHDA loans have been closed in as little as 12 days with Mortgage 1, demonstrating just how efficient the process can be.
A MSHDA Program for Every Situation
Available to first-time and repeat buyers in targeted areas
MI Home Loan DPA (Down-Payment Assistance): Need a boost when it comes to assets? Would $10,000 do the trick? This program will not only give you just that, but also an aggressively low interest rate – just 6.375% (APR 6.493%*) at the time this article was written.
MI Home Loan: Don’t need help with your down-payment? How does an interest rate well below market average sound? Currently this program offers a 5.75% rate (APR 5.863%*), without zero discount points.
Mortgage Credit Certificate (MCC): Assets are in great shape and want the best bang for your buck? This program provides a 20% federal tax credit on your annual mortgage interest up to $2,000 annually. Boost your take-home pay, increase your borrowing power, and net a stellar effective interest rate. Want to buy an even lower interest rate? With this program you can double up on your long term savings and do exactly that!
What Should Buyers and Realtors Do Now?
Prepare for Opportunities: Begin exploring potential properties and financing options that will become available under the new guidelines.
Consult with Experts: Engage with experienced lenders, such as Mortgage 1, to understand how these changes can benefit you and to ensure a smooth transaction process.
Final Thoughts
March 31, 2025, marks the beginning of a new chapter for Michigan homebuyers and real estate professionals. With these significant changes on the horizon, it’s time to prepare and take full advantage of the expanded opportunities that MSHDA’s programs will offer and connect with an experienced lender to get ready.
The annual percentage rate (APR) quoted above represents a typical $99,200 FHA-insured, fixed-rate loan on a $100,000 home with a down payment of $2,250 and financed Upfront Mortgage Insurance Premium (UFMIP). This APR is based on a 1% origination fee, 15 days interest adjustment, and $220 for loan closing fees. Actual APR may vary depending upon the Mortgage Loan Fees charged by the participating lender.