Picking new home base on budget concept. Income or lifestyle. House or mortgage affordability calculation, businessman hand wisely think to picking different variant houses with price tag.

Introduction

Big news for Michigan homebuyers! With the signing of HB 5032 into law, Governor Gretchen Whitmer has initiated a significant change in the state’s housing market. Starting in May 2025, the Michigan State Housing Development Authority (MSHDA) will increase its maximum sales price limit. This historic update opens the door to affordable homeownership for more families and individuals across Michigan, marking the first major change to MSHDA’s purchase price limits in over 16 years.

These changes provide expanded opportunities for both first-time and repeat buyers, creating new pathways to homeownership. Let’s break down what this means for you.

What’s Changing?

  1. Increased Sales Price Limits
    For the first time since 2009, MSHDA is raising its maximum sales price limit. The new maximum eligible home price from $224,500 to $510,939 for single-family properties. This is a major leap from the current limit of $224,500, enabling buyers to access a wider range of homes.
  2. Expanded Eligibility Criteria
    Previously, many MSHDA programs were limited to first-time buyers. Under the new guidelines, repeat buyers will also be eligible in 82% of Michigan counties. This expansion means more families, regardless of where they are in their homeownership journey, can benefit from MSHDA’s affordable loan programs.
  3. Versatile Loan Options
    MSHDA programs can be combined with major loan types, including Conventional, FHA, VA, and RD (Rural Development) loans. This flexibility ensures that homebuyers have access to competitive rates and financing options tailored to their needs.

How This Helps Michigan Homebuyers

  1. Access to a Broader Range of Homes
    With the increased sales price limit, buyers are no longer priced out of neighborhoods or homes that were previously unattainable. This change ensures families can find homes that truly meet their needs and lifestyles.
  2. Down Payment Assistance
    The MI Home Loan DPA (Down Payment Assistance) program offers up to $10,000 to help cover upfront costs, easing the financial burden for both first-time and repeat buyers. Combined with competitive interest rates, this program ensures that homeownership remains affordable over the long term.
  3. Tax Savings for Buyers
    The Mortgage Credit Certificate (MCC) program provides a 20% federal tax credit on annual mortgage interest, up to $2,000 annually. This valuable benefit increases take-home pay and boosts borrowing power, creating even greater affordability.
  4. Simplified Financing Process
    MSHDA programs work seamlessly with a variety of loan types, making it easier for buyers to secure financing without added complexity. With an experienced lender like Ross Mortgage, you’ll have the guidance you need every step of the way.

What Should Buyers Do Now?

  1. Prepare for Opportunities
    Begin exploring homes that may fall under the expanded sales price limits. This is the perfect time to identify properties that meet your needs and fit within your budget.
  2. Connect with Ross Mortgage
    As one of Michigan’s most trusted lenders, Ross Mortgage is here to help you understand these new opportunities and how they can work for you. Our team of experts specializes in MSHDA programs and can provide personalized guidance to make your homeownership journey as smooth as possible.
  3. Stay Informed
    The new sales price limits will be implemented in May 2025, once the IRS releases updated safe harbor limits and HUD announces new income guidelines in April. Stay connected with Ross Mortgage for updates on the exact implementation date and how to take full advantage of the new guidelines.

Final Thoughts

The increased sales price limits and expanded eligibility criteria are game-changers for Michigan homebuyers. Whether you’re buying your first home or moving to your next, these updates provide more opportunities to find a home that suits your needs and budget.

At Ross Mortgage, we’re proud to help Michigan families achieve their homeownership goals. With over 75 years of experience, we’re dedicated to providing the guidance, resources, and personalized service you need to make your dream a reality.

Posted in blog