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 $10,000. 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.

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.
• More