No, as it turns out I was not correct, and neither are you, or anyone else to answer any of these questions on any forum I've found. I figured it out last night, not by reading any of the documentation of the requirements, but by working through the form view of turbo tax very carefully until I reached the point where it stopped.
There is a "hidden" requirement, not listed in the documentation for the credit, that disqualifies you if you don't meet it. Regardless of meeting all the listed requirements, if your property tax paid is less than 3.2% of your Total Household Resources then you don't qualify for the Michigan Homestead Property Tax credit, full stop.
