Buying Your First Home in Mid-Michigan? How MSHDA's MI 10K Down Payment Help Works

One thing I hear from buyers all the time, especially first-time buyers, is this: "I could handle the monthly payment. It's the down payment and closing costs that are holding me back."

If that sounds like you, there's a state program worth knowing about. The Michigan State Housing Development Authority (MSHDA) offers a home loan and up to $10,000 in down payment help for buyers with low and moderate incomes, and the income limits are higher than a lot of people expect. Here's how it works in plain language, with the current 2026 numbers for Genesee County and the areas around it.

The Two Pieces: MI Home Loan and MI 10K DPA

MSHDA's homebuyer page lists its main programs as the MI Home Loan mortgage, the MI 10K Down Payment Assistance loan, the Mortgage Credit Certificate, and housing education (MSHDA Pathway to Housing).

• MI Home Loan is the mortgage itself. You apply through a participating lender, not through MSHDA directly (MSHDA MI Home Loan).
• MI 10K DPA is the down payment help. It has to be combined with an MI Home Loan, so you can't pair it with just any mortgage (MSHDA MI 10K DPA Loan).

If you've seen older articles about other MSHDA products, keep in mind that MSHDA's current homebuyer page lists the MI Home Loan and MI 10K DPA, so ask your lender what's being offered today.

How the $10,000 Works

According to MSHDA, the MI 10K DPA (MSHDA MI 10K DPA Loan):

• Provides up to $10,000 toward your down payment, closing costs, and prepaid expenses.
• Is an interest-free loan, not a grant.
• Has no monthly payments.
• Is repaid later, when certain things happen, such as paying off your first mortgage, selling or refinancing the home, or no longer living in it as your home.
• Doesn't require you to borrow the maximum loan amount.
• Is available statewide.

That repayment point matters. Because it's a loan, the balance comes due when you sell or refinance, so it's something to plan for down the road.

Who Qualifies for the MI Home Loan?

MSHDA lists these basics (MSHDA MI Home Loan):

• First-time buyers statewide. MSHDA defines that as not having owned a home in the previous three years, so you may count as "first-time" even if you owned before.
• Repeat buyers in "targeted areas." More on that below.
• Household income limits that depend on your household size and where the home is located.
• A sales price limit of $566,355 statewide, effective June 1, 2026.
• A minimum credit score of 640.

Your lender will look at the whole picture, including your income, debts, and the property, so think of these as starting points, not a guarantee of approval.

2026 Income Limits Around Genesee County

These limits come from MSHDA's 2026 Income and Sales Price Limits chart, effective June 1, 2026 (MSHDA 2026 Income and Sales Price Limits). The first number is for a household of 1 to 2 people, and the second is for 3 or more.

• Genesee County, targeted (City of Flint, Genesee Township, Mount Morris Township): $118,080 / $137,760
• Rest of Genesee County, non-targeted (this includes areas like Fenton, Linden, Grand Blanc, Goodrich, Davison, Flushing, and Lake Fenton): $98,400 / $113,160
• Oakland County, targeted (City of Pontiac, Royal Oak Township, City of Southfield): $125,760 / $146,720
• Rest of Oakland County, non-targeted (including the Holly area): $104,800 / $120,520
• Livingston County, targeted (Cohoctah Township, Conway Township, City of Howell, Iosco Township): $154,800 / $180,600
• Rest of Livingston County, non-targeted (including the Hartland area): $129,000 / $148,350
• Lapeer County, targeted (entire county): $125,760 / $146,720
• Shiawassee County, targeted (Fairfield Township, Hazelton Township, City of Laingsburg, Middlebury Township, City of Owosso): $118,080 / $137,760
• Rest of Shiawassee County, non-targeted: $98,400 / $113,160

The $566,355 sales price limit is the same in every one of these areas. MSHDA updates these figures from time to time, so always check the current chart before you count on a number.

What "Targeted Area" Means for You

This is the part that surprises people. In non-targeted areas, you must be a first-time buyer. In targeted areas, you can be a first-time buyer or a repeat buyer (MSHDA 2026 Income and Sales Price Limits).

MSHDA's targeted areas flyer explains that if a home isn't on the targeted list, it's in a non-targeted area, and there you aren't eligible if you've owned a home as your principal residence within the last three years. It also notes that a township on the list includes only the unincorporated parts of that township (MSHDA Targeted Areas flyer). So if a home is near a city or village line, have your lender confirm its status before you write an offer.

Here's a made-up example to show how it plays out. Say a family of four is house hunting in Grand Blanc with a household income of $105,000. That's under the $113,160 limit for 3 or more people in the non-targeted part of Genesee County, so if they haven't owned a home in the last three years and meet the other requirements, they could be a candidate. If that same family already owns a home, they'd need to look in a targeted area, like anywhere in Lapeer County or the City of Flint, to use the program. This is only an illustration. Your lender figures your qualifying income under the program's rules.

Homebuyer Education Is Required

MSHDA requires a homebuyer education certificate of completion for all homebuyers using the MI 10K DPA (MSHDA MI 10K DPA Loan), and says both the MI 10K DPA and the MI Home Loan require a homebuyer education course (MSHDA Blueprint to Homeownership FAQ).

The classes are offered through MSHDA's network of HUD-approved housing counseling agencies. According to MSHDA, many agencies offer phone, virtual, and in-person appointments, some offer group workshops and online classes, and many services are free or low-cost, so ask about any fees when you sign up. MSHDA also recommends scheduling early in the process (MSHDA Blueprint to Homeownership FAQ). You can find a class by county with the MSHDA Housing Education Locator.

My advice: take the class before you start touring homes. It's one less thing to scramble on once you're under contract.

Another Option to Ask About: The Mortgage Credit Certificate

MSHDA's Mortgage Credit Certificate (MCC) is a federal tax credit. Qualified buyers can credit 20% of the mortgage interest they pay each year against their federal tax bill, for the life of the original mortgage (up to 30 years). You have to apply and be approved before you buy, through an approved MCC lender, and the same first-time and targeted-area rules apply (MSHDA Mortgage Credit Certificate). MSHDA's 2026 income and price limits chart covers both the MI Home Loan and the MCC. Ask your lender whether it fits your situation, and loop in your tax preparer.

Know About the Recapture Tax

This one doesn't get talked about enough. Under federal rules, if you sell your home within the first 9 years after getting a loan funded by tax-exempt mortgage bonds or an MCC, you may have to pay back all or part of that benefit on your federal taxes (IRS Instructions for Form 8828). MSHDA's lender materials include a Notice of Recapture Tax for both the MI Home Loan and MCC programs (MSHDA Lender Letter 2026-05).

It depends on several factors, so selling early doesn't automatically mean you'll owe it. Ask your lender to walk you through that notice at closing, and talk with a tax professional if you think you might move within a few years.

Compare the Rate, Too

Down payment help is great, but it isn't free money. In MSHDA's May 2026 lender letter, the posted MI Home Loan rate was higher with down payment assistance than without it (MSHDA Lender Letter 2026-05). Rates change often, so ask your lender to show you the monthly payment both ways, and compare it with other loan options, before you decide.

How to Get Started

• Talk to a MSHDA-participating lender. MSHDA says you have to contact an approved lender to apply (MSHDA MI 10K DPA Loan). MSHDA publishes a list of MI Home Loan lending partners, and the Experienced Loan Officer Locator lets you search by county.
• Get pre-approved and ask which programs you qualify for, including how the DPA and the rate affect your payment.
• Sign up for homebuyer education right away.
• Shop within the price limit and your budget. Have your lender confirm whether each address is targeted or non-targeted, especially if you're a repeat buyer.
• Get a home inspection. MSHDA recommends hiring a professional inspector once you've narrowed it down to one home (MSHDA Home Inspections and Property Checklist).
• Leave room in your closing timeline. MSHDA does its own underwriting compliance review and has told lenders it works first-in, first-out and doesn't accommodate rush requests (MSHDA Lender Letter 2026-05). I'll keep that in mind when we write your offer.

Ready to See If You Qualify?

Whether you're looking in Flint, Grand Blanc, Davison, Flushing, Fenton, Linden, Holly, or out toward Lapeer or Hartland, I'd love to help. I can connect you with lenders who work with MSHDA programs, and then help you find homes that fit the price limits and your budget, so you can shop with confidence. Give me a call at (810) 962-4908.

This post is general information, not legal, tax, or financial advice. Program rules, income limits, price limits, and rates change, so confirm the current details with a MSHDA-participating lender and talk with a tax professional about your situation.