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Property located in a platted area that consists of more than one lot, may be financed only to the extent it is necessary to maintain the basic livability of the residence and is considered common and customary for the area. MSHDA will review the appraisal to determine eligibility based on the following criteria:
- If the land is considered part of the residence as it reasonably maintains the basic livability to the residence.
- The land does not provide, other than incidentally, a source of income to the mortgagor.
- The zoning classification on the appraisal and property is considered typical residential property for the area.
- The appraisal must include evidence that the size of the property is common and customary for the area. Example comps or photos of surrounding neighborhoods with similar property size.
- Property that is platted may not exceed 5 acres.
Note-Documentation from the appraiser or municipality regarding zoning requirements or the possibility of property splits is no longer required.
Properties that include land up to 5 acres will be eligible for MSHDA MI Home Loan financing without an Acreage Waiver following normal guidelines for a single-family residence. Properties over 5 acres and up to 10 acres may be eligible for a waiver if they meet the following criteria.
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Updated Form: Request for Waiver of The Acreage Limitation DOH 003 (3-25)
- Must be completed and signed by the lender for all waiver requests.
- Appraisal must include the following (details on waiver):
- Photographs of the property.
- The land is considered part of the residence and maintains the basic livability of the residence.
- The land does not provide, other than incidentally, a source of income to the mortgagor.
- The zoning classification on appraisal and property is considered typical residential property for the area.
- Land value (site value) does not exceed 30% of the total value of the property.
- The appraisal must include at least two comparable sales in the area supporting the property being considered as residential.
- Properties above 10.01 acres will not be eligible for MSHDA financing.
With the changes to our land policy, we are confident the need for property splits will be significantly reduced if not eliminated. However, due to excessive issues in closing documentation, MSHDA has adopted a policy regarding Property Splits. Properties that are in the process of being split from other lots or a larger parcel will not be eligible for the waiver or for MSHDA financing. A split that is final may be eligible. Documentation requirements are listed in Section 12.8 of the Operating Manual.
The Mortgage Credit Certificate Program (MCC) will increase the maximum allowable land from 2 acres to 5 acres effective with files submitted on or after April 15, 2025. The MCC program is not eligible for the waiver.
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Updated Form: Application Affidavit MCC-003 (4-25) will be required on all requests for an MCC commitment with files submitted on or after 4-15-25.
The 2025 Lender Renewal period is just around the corner and will kick off on April 1st! As we approach this important time, we want to ensure you are prepared for the renewal process and aware of some key updates for this year.
What You Need to Know:
On April 1st, your designated contact member will receive an invite from Comergence by Optimal Blue to start the 2025 Annual Lender Renewal period. You will have 30 days to accept the invite and submit the necessary questionnaire and required documentation. Please ensure that once you completed the questionnaire and uploaded the necessary documentation, you click the “Submit” button to finalize your submission.
If you require additional time, a 10-day extension may be requested by contacting your Business Development Account Manager.
Once you have accepted the invite and your questionnaire is submitted, our QC team will have 30 days to review your application and documentation.
Important Changes for the 2025 Renewal:
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MSHDA Brand Certification Form: You’ll need to review the MSHDA Brand Guidelines and acknowledge them by sending back the MSHDA Brand Guideline Certification Form. This will be available within the Document Channel in Comergence.
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Lenders who fail to complete their 2025 Annual Renewal by the April 30th deadline, may be subject to having their relationship with MSHDA suspended. Should the lender wish to reinstate their relationship with MSHDA after being suspended, the lender will need to reapply as a new lender and pay the $500 new lender application fee.
New Annual Renewal Fee Coming in 2026:
MSHDA will be implementing a new $500 annual renewal fee. This new lender renewal fee will be in effect for the 2026 annual lender renewal. We want to ensure all lenders receive notice of the implementation of this new $500 lender renewal fee, as it will be required for all lenders who do not close at least 12 loans with MSHDA in the previous (2025) calendar year. Those lenders who close at least 12 loans with MSHDA during 2025 will receive a code to bypass paying the $500 annual renewal fee for the 2026 annual lender renewal.
Deadline Reminder:
Completing your renewal by the April 30th deadline is crucial for your continued participation in our program. We are committed to a smooth and seamless renewal process, and we look forward to continuing our partnership with you.
If you have any questions or need assistance, please don’t hesitate to reach out to your designated Business Development Account Manager or email MSHDA-Quality-Control@michigan.gov
Thank you for your prompt attention to this matter, and we look forward to working with you throughout the year!
We have seen incredible interest in the First-Generation DPA Pilot Program since it’s official launch on February 18, 2025. We knew that the funds for this program would be going quickly, and indeed they are. We have already successfully assisted 3 new homeowners with the First-Generation DPA and have many more future homebuyers in the pipeline with reservations and commitments for these funds. As of Monday, March 24th, we still have close to $3.6M in funds available.
Please be sure to get your reservations in for current homebuyers you are working with as we expect that the remaining funds will be exhausted within the next three to four weeks. Thank you for the great collaboration on the pilot program and we so appreciate you sharing the individual stories from those new homebuyers who have benefited from this First-Generation DPA pilot program.
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