MSHDA DOWN PAYMENT ASSISTANCE

The Michigan State Housing Development Authority (MSHDA) offers down payment assistance to people with no monthly payments.

The down payment program offers assistance up to $7,500. (or 4% of the purchase price, whichever is less.) The funds can be spent on closing costs, prepaid expenses homeowners insurance or property taxes) and the down payment itself. Borrowers still required to provide at least 1% of the loan amount themselves.

The down payment assistance is repaid when the home is sold, the mortgage is refinanced or the home loan is paid off in full. It has a 0% interest rate.

Mortgage 1 has been MSHDA’s #1 lender since 2014.

Michigan home buyers that have not owned a home in the last three years can fit into the first time home buyer classification. That means that if they owned a home but lost prior to three years ago, they may be able to get a fresh start under these programs.

MSHDA Eligibility requirements;

Available for credit scores as low as 640
The alternative credit review is available for some borrowers who have no credit score
The minimum down payment is 3% and down payment assistance is available
Available to first-timers as well as repeat home buyers in economically disadvantaged target areas
You have your choice of conventional, FHA, VA or USDA loans
The home has to be your primary residence
The 2018 sale price limit is $224,500
There are income limits that vary by location
The overall debt-to-income ratio of 45% or less
Borrowers must attend a homebuyer education course if you receive down payment assistance
Borrowers have to contribute at least 1% of the loan amount.
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