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Lender Letter 2025-5
Tuesday, May 27, 2025
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Current Interest Rates
MI Home Loan no DPA
6.000% APR 6.115%
MI Home Loan with DPA
6.625% APR 6.744%
See Interest Rate Information section below.
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Please congratulate Darren Montreuil on his promotion as MSHDA Homeownership’s Partner and Program Engagement Manager! In his new role, Darren will be working with our Business Development & Account Managers to continue to promote the utilization of the MSHDA Homeownership Programs with our lender and realtor partners across the state to assist Michiganders in achieving their dream of homeownership. He will also be working with our Housing Education Specialists to expand our Housing Education Program, where we partner with Housing Counseling Agencies to ensure crucial services such as pre-purchase and post-purchase counselling, foreclosure prevention, and financial counseling remain available to support homeowners throughout their homeownership journey. With Darren’s promotion, we will be looking to add another Business Development & Account Manager to our team. Until then, Darren will continue to support his existing lender relationships with some assistance from both Eric Dusenbury and Nancy Baker. We are excited to have Darren in his new role as we know he will continue to assist us in further evolving MSHDA Homeownership partnerships and programs. Congratulations Darren!
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Notice of Recapture Tax Forms-Revised
- Notice of Recapture Tax SFH 126 (5-2025)
- Notice of Recapture Tax MCC 010 (5-2025)
MSHDA has revised the Notice of Recapture Tax Forms. Any MSHDA programs that are funded with tax-exempt bonds are subject to Federal Recapture Tax. Please note MI 10K DPA is now required to be included in the federally subsidized amount on the Notice of Recapture Tax Form. This requirement applies only to the following MSHDA Homeownership Programs:
- MI Home Loan First Mortgages
- MI 10K DPA
- Mortgage Credit Certificate (MCC)
The new forms provide additional information to the borrower regarding recapture tax and will require the lender to complete information such as street address, county, loan closing date, the federally subsidized amount for all applicable loans and whether the property is in a targeted or non-targeted area. To streamline the process for Lenders, the revised form also incorporates all updated 2025 Federal Recapture Tax Income Limits for the entire state. The lender is no longer required to determine the correct Federal Recapture Tax Income limits.
The updated forms, a Recapture Tax FAQ, and How to Complete Recapture Tax Forms PowerPoint are available on Lender Online.
These new Recapture Tax Forms are effective with loans closed on or after May 31, 2025.
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Homeowner’s insurance policies are coming in at the time of purchase showing Actual Cash Value for the roof and Replacement Cost Value for the rest of the dwelling. As a reminder, MSHDA policy requires that homeowner insurance policy coverage reflects either:
- 100% of the replacement cost value of the improvements as of the current property insurance policy effective date, or
- The unpaid principal balance of the loan, provided it equals no less than 80% of the replacement cost value of the improvements as of the current property insurance policy effective date.
Any indication of Actual Cash Value for any and all parts of the dwelling on a homeowners insurance policy are not acceptable.
When promoting MSHDA’s new sales price limit, don’t forget the full picture!
Borrowers must meet BOTH:
- The sales price limit AND
- The income eligibility guidelines
When you're crafting those eye-catching ads or sharing exciting updates, make sure to include the required income ranges too. It's not just about what buyers can spend — it's about what they can qualify for!
Let's keep it clear, compliant, and borrower-friendly.
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MI Home Loan no DPA
6.000% APR 6.114%
MI Home Loan with DPA
6.625% APR 6.744%
Current rates can be found on Lender Online on the Bulletin Board.
- Loans previously reserved must adhere to the existing original rate.
- Expired or expiring reservations will be extended to the worst-case scenario rate.
- Property change will require a new reservation at the current posted rate per our reservation policy.
- If you need Lender Online access, please contact the administrator at your company.
For the quickest response please email us. This email is monitored throughout the day by homeownership staff.
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Please be sure to access the Bulletin Board within Lender Online to catch up on the latest news and updates.
Previous Lender Letter Emails
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