MSHDA Increases Sales Price Limit – What Does That Mean for You?

Michigan homebuyers, take note — big changes are coming that could make purchasing a home more achievable than ever. Beginning in May 2025, the Michigan State Housing Development Authority (MSHDA) will raise its maximum sales price limit for the first time in over 16 years. Thanks to the passage of HB 5032, this update opens new doors for buyers across the state.

Here’s what you need to know — and how this change could work in your favor.

What’s Changing?

Higher Sales Price Limits
MSHDA’s new guidelines will increase the maximum sales price for eligible single-family homes from $224,500 to $544,233. This significant jump gives homebuyers access to a broader range of properties throughout Michigan, including many that were previously out of reach.

Expanded Eligibility
MSHDA programs have historically been geared toward first-time homebuyers, but that’s changing. Beginning next May, repeat buyers will also be eligible for MSHDA assistance in 82 percent of Michigan counties. This expansion means more buyers, regardless of where they are in their homeownership journey, will be able to take advantage of MSHDA programs.

Flexible Loan Compatibility
MSHDA programs can be paired with a variety of popular loan types, including Conventional, FHA, VA, and RD (Rural Development) loans. This added flexibility allows more buyers to find financing solutions tailored to their specific needs.

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How This Helps You

Access to More Inventory
The increased price cap opens the door to a larger pool of available homes — giving you more options in more locations and helping you find a home that truly fits your lifestyle and budget.

Up to $10,000 in Down Payment Assistance
MSHDA’s MI Home Loan DPA program offers up to $10,000 to help cover your down payment and closing costs. This can be a game-changer for buyers looking to make a competitive offer without depleting their savings.

Ongoing Tax Savings
Through MSHDA’s Mortgage Credit Certificate (MCC) program, eligible buyers can receive a federal tax credit worth up to $2,000 annually, based on mortgage interest paid. This benefit boosts affordability and adds value for years to come.

Simple, Streamlined Financing
Because MSHDA works seamlessly with a range of loan types, the financing process remains straightforward. And when you work with an experienced lender like Michigan Mortgage, you have a trusted partner guiding you through every step.

What Should You Do Now?

Start Looking at Homes
Explore neighborhoods and listings that will fall within the new sales price limits. With more homes potentially in reach, it’s a great time to refine your search.

Reach Out to Michigan Mortgage
Our team is well-versed in MSHDA programs and how they work. We can help you navigate the changes, understand your eligibility, and secure the right loan for your needs.

Stay Updated
The new sales price limits are expected to take effect in May 2025, once HUD releases updated income guidelines and the IRS announces new safe harbor limits in April. We’ll keep you informed with everything you need to know as the changes roll out.

Final Thoughts

MSHDA’s updated guidelines represent a major win for Michigan homebuyers. Whether you’re purchasing your first home or transitioning to your next, the increased sales price limits and expanded eligibility open the door to more opportunity — and more homes.

At Michigan Mortgage, we’re committed to helping you make the most of it. If you’re ready to learn more or begin your home search, contact us today. We’re here to help you move forward with confidence!