Overcome the barrier of down payments with the Michigan State Housing Development Authority (MSDHA) loan programs. Expertly guided by Mortgage 1 Downriver.

Unlock the Door to Your New Home in Woodhaven and Downriver

For many aspiring homeowners in Woodhaven, MI, and the surrounding Downriver communities, the monthly mortgage payment isn’t the problem—it’s the upfront cost of the down payment and closing fees. If you have a steady income and good credit but haven’t been able to save the thousands of dollars required for a traditional down payment, a MSDHA Loan might be the perfect solution for you.

At Mortgage 1 Downriver, we specialize in helping Michigan families utilize state-sponsored programs to stop renting and start owning. Led by experienced loan officer Joseph Migliaccio, our team is dedicated to navigating the specific guidelines of the Michigan State Housing Development Authority (MSDHA) to help you secure up to $10,000 in down payment assistance.

Voted Downriver’s #1 Mortgage Lender for 11 years in a row, we combine local market expertise with deep knowledge of government lending programs to ensure you get the best financial start in your new home.

Call Joseph Migliaccio Today: (734) 341-4322 | Email Us

What is a MSDHA Loan?

The Michigan State Housing Development Authority (MSDHA) was created to address the housing needs of Michigan’s low-to-moderate-income citizens. MSDHA does not lend money directly to borrowers; instead, they work through a network of experienced, approved lenders like Mortgage 1 to distribute funds.

A MSDHA loan is typically a standard FHA, VA, or USDA Rural Development loan that is paired with MSDHA’s down payment assistance. This combination offers a powerful tool for first-time homebuyers to enter the market with significantly less cash out of pocket.

Key Features of MSDHA Programs:

Fixed-Rate Mortgages: Enjoy the stability of a 30-year fixed interest rate.
Down Payment Assistance (DPA): Access funds to cover the required down payment and closing costs.
Statewide Availability: Available for properties across Michigan, with specific expertise in Wayne, Monroe, and Washtenaw counties.
Tax Credits: Potential eligibility for Mortgage Credit Certificates (MCC) to reduce federal tax liability.

The MI 10K DPA Loan: Up to $10,000 in Assistance

The most popular component of the MSDHA program is the MI 10K DPA. This program provides a loan of up to $10,000 to help borrowers cover their down payment, closing costs, and prepaid expenses (such as taxes and insurance escrows).

How the MI 10K DPA Works

It is important to understand that this assistance is a loan, not a gift. However, the terms are designed to be incredibly friendly to the borrower:

0% Interest: The $10,000 second mortgage typically carries a 0% interest rate.
No Monthly Payments: You do not make monthly payments on this second loan.
Repayment Terms: The loan amount is due in full only when the home is sold, the mortgage is refinanced, the first mortgage is paid off, or the home is no longer your primary residence.

This structure allows you to keep your monthly housing expenses manageable while still bridging the gap to homeownership.

Eligibility Requirements: Do You Qualify?

Because MSDHA loans are designed to help specific demographics of homebuyers, there are strict eligibility guidelines. As your local Woodhaven experts, Mortgage 1 Downriver will review your financial profile to ensure you meet these criteria before applying.

1. Credit Score

Borrowers generally need a minimum credit score of 640. However, credit requirements can vary slightly based on the specific loan product (FHA vs. Rural Development) paired with the MSDHA assistance. Our team can help analyze your credit report and offer advice on improving your score if necessary.

2. Income Limits

MSDHA sets maximum household income limits which vary by county and family size. These limits are updated annually. For example, income limits in Wayne County may differ from those in Monroe County. It is crucial to count the income of all adults who will be living in the home, even if they are not on the loan.

3. Purchase Price Limits

The program is intended for affordable housing, so there is a cap on the purchase price of the home. Currently, the statewide limit is set at $224,500 (subject to change by MSDHA). This price point covers a wide variety of starter homes and condos in the Downriver area.

4. First-Time Homebuyer Status

Generally, you must be a first-time homebuyer. MSDHA defines this as someone who has not owned a principal residence in the last three years. Exceptions: You may not need to be a first-time buyer if you are purchasing a home in a federally designated “Targeted Area.” We can check the address of any home you are interested in to see if it falls into this category.

5. Primary Residence

The property must be your primary residence. MSDHA loans cannot be used for investment properties or vacation homes.

Requirement	Standard Guideline
	Quick Eligibility Checklist
Minimum Credit Score	640
Maximum Sales Price	$224,500 (Statewide)
Debt-to-Income Ratio	Max 45%
Property Usage	Primary Residence Only
Homebuyer Education	Required (Class completion)

The Homebuyer Education Requirement

This course can often be taken online or in person through MSDHA-approved counseling agencies. Mortgage 1 Downriver can provide you with a list of approved providers to help you satisfy this requirement quickly.

Why Choose Mortgage 1 Downriver for Your MSDHA Loan?

Not all lenders are approved to offer MSDHA loans, and even fewer have the specific expertise to close them efficiently. The paperwork and underwriting process for state-assisted loans are more rigorous than standard conventional loans. You need a partner who knows the system inside and out.

Local Experience Matters

Joseph Migliaccio and the team at Mortgage 1 Downriver have served the Woodhaven community and beyond for years. We have closed over $1 Billion in mortgages and helped thousands of families. We understand the local real estate landscape and have strong relationships with local realtors who trust our ability to close MSDHA deals on time.

Benefits of Working with Us:

Speed: We process loans in-house, ensuring faster turnaround times even with complex government programs.
Communication: You will never be left in the dark. We keep you updated at every step, from pre-approval to the closing table.
Reputation: Voted Downriver’s #1 Mortgage Lender for over a decade.
Personalized Service: We treat every client like family, ensuring the loan program you choose is truly the best fit for your long-term financial goals.

The Application Process: Step-by-Step

Contact Us: Call Joseph Migliaccio at (734) 341-4322 or apply online to start your pre-approval.
Document Review: We will collect your pay stubs, W-2s, and bank statements to verify your income and eligibility for the MSDHA program.
Pre-Approval Letter: Once verified, we issue a pre-approval letter. This gives you the credibility to make offers on homes.
Homebuyer Education: Complete your required MSDHA housing counseling course.
House Hunting: Find your dream home in Woodhaven or the surrounding area with your real estate agent.
Underwriting: Once your offer is accepted, our team works with MSDHA to finalize your loan approval.
Closing: You sign the papers, receive your keys, and move into your new home!

Frequently Asked Questions (FAQs)

Is the MSDHA down payment assistance free money?

No, it is a 0% interest loan. It must be paid back when you sell the home, refinance, or pay off the first mortgage. However, because there are no monthly payments on it, it acts very much like a grant in terms of your monthly cash flow.

Can I use MSDHA loans for a condo?

Yes, MSDHA loans can be used for single-family homes and approved condominiums. Manufactured homes may also be eligible if they meet specific foundation and title requirements.

How much money do I need to save on my own?

While the MI 10K DPA covers the minimum down payment (usually 3.5% for FHA) and some closing costs, you must make a minimum cash investment of 1% of the sales price from your own funds. This ensures you have “skin in the game.”

Does the process take longer than a regular mortgage?

Because the file must be reviewed by both our internal underwriters and MSDHA’s underwriters, the process can take slightly longer than a standard conventional loan. However, Mortgage 1 Downriver is known for efficiency, and we work diligently to meet your contract closing date.

Ready to Buy Your Home?

Don’t let the lack of a down payment stop you from building wealth through real estate. The MSDHA program is a fantastic opportunity for Michigan residents, and Mortgage 1 Downriver is here to guide you through it.

Contact Joseph Migliaccio and the Mortgage 1 Team today to see if you qualify for up to $10,000 in assistance.

Joseph Migliaccio
Mortgage 1 Downriver
Phone: (734) 341-4322
Email: jmigliaccio@mortgageone.com
Location: Woodhaven, MI

Mortgage 1 is an Equal Housing Lender. NMLS #129386. Corporate NMLS #198398. All loans subject to credit approval and program guidelines.