Trying to Buy a Home Without a Trust Fund?
With prices up, rates doing their usual rollercoaster routine, and down payments still looming large, homeownership can feel like it’s reserved for the ultra-prepared or ultra-privileged. But during National Homeownership Month, we’re shining a light on recent FHA and MSHDA updates designed to make buying more achievable—because that’s the goal. These programs were built to expand access—and we’re here to make sure more people actually benefit from them. .
🏡 FHA’s Updates: Small Changes, Real Impact
The Federal Housing Administration continues to be one of the most accessible loan paths for buyers working with modest savings, higher debt, or lower credit. In 2024, they made a couple of key changes that help buyers qualify more easily and stretch their monthly budgets further:
Student loan debt is now calculated more fairly.
Previously, FHA used 1% of the borrower’s total loan balance when calculating
debt-to-income ratio, which was often higher than the actual payment. Now, FHA
uses the actual monthly payment, making qualification more accurate and
attainable.
Mortgage insurance premiums were reduced.
In March 2023, FHA dropped the annual mortgage insurance premium (MIP) from
0.85% to 0.55% for most borrowers with 3.5% down payments. That’s a savings of
around $800 per year on a $265,000 mortgage.
Together, these updates help open the door for more buyers who are financially ready but previously held back by outdated formulas or heavier upfront costs.
💰 MSHDA Is Expanding Access Across Michigan
The Michigan State Housing Development Authority (MSHDA) has broadened who qualifies for this program, increased how much assistance is available, and raised the purchase price limits—making their programs more usable in real-world market conditions.
✅ MI 10K Down Payment Assistance Loan: More Support, Wider Reach
$10,000 in down payment assistance (formerly $7,500 or
$5,000)
This is a 0% interest, deferred loan that’s only repaid when you sell,
refinance, or transfer the property.
Expanded purchase price limits
Purchase limits increased in 2025 across most counties, including Kent County,
where the new limit for existing homes is $544,233
More zip codes now eligible! (Ask about which ones interest you)
MSHDA has expanded access in higher-need areas across the state. That means
more neighborhoods are now within reach—and not just the ones needing a full
gut renovation.
🔄 Not Your First Rodeo? You Might Still Qualify
You don’t have to be a first-time buyer to benefit. If you haven’t owned a home in the past three years, MSHDA considers you a first-time buyer again. That includes people who’ve rented, relocated, downsized, or gone through major life changes.
And in certain targeted zip codes, even that three-year rule is waived entirely. So if you’ve been sitting on the sidelines thinking you missed your shot—this could be your way back in. Reach out to us!
🚀 NEW: $25,000 for First-Generation Homebuyers
In 2025, MSHDA launched a pilot program offering up to $25,000 in down payment assistance to first-generation homebuyers. This includes:
- Buyers whose parents have not owned a home in the past 3 years
- Those who aged out of foster care or were legally emancipated
Program basics:
- $25,000 assistance as a 0% interest, deferred loan
- Available statewide (not zip-code restricted)
- Purchase price cap: $544,233
- Must use a MI Home Loan product (FHA, USDA, or Conventional)
- Homebuyer education required
- 1% borrower contribution required
- Pilot is limited to ~320 households with $8 million in available funds
(This program cannot be combined with MI 10K DPA, but it offers one of the most generous down payment solutions currently available for eligible buyers.)
🗓️ Why We’re Talking About This in June
June is National Homeownership Month—a time set aside nationally to recognize the value of homeownership and to spotlight efforts that expand access to it.
It’s not about pushing timelines or rushing decisions. It’s about highlighting what’s possible—and who it should be possible for. At WMI Home Team, we believe that includes people who’ve been overlooked, priced out, or told “not yet” one too many times.
The updates from FHA and MSHDA didn’t launch this month—but the conversation around them is especially worth having right now. Because when life gets more expensive, access gets more important. And the more people know what’s available to them, the more doors open.
🤝 WMI Home Team Is Here to Help You Navigate It All
From MSHDA requirements to FHA prep to figuring out which program even fits your situation—we don’t expect you to become the expert overnight.
WMI Home Team has built strong relationships with local lender partners who know these programs inside and out. We’ll help you get connected, understand your numbers, and build a strategy that works in today's market.
📲 Let’s Build a Plan Around Your Goals
Whether you’re buying for the first time, the first time in a while, or just wondering if now makes sense—we’d love to help you sort fact from fear.
Reach out to start the conversation. 616-312-7990 | movehappily@wmihometeam.com
You might be closer to homeownership than you think—and this month is as good of time as any to find out.
