GRAND RAPIDS, Mich. (WOOD) – When it comes to buying a home, there’s a lot you need to know. From loan rates to closing costs, and much more. In Michigan, there’s a program that helps first time home buyers statewide. Here to tell us more is Mary Townley from the Michigan State Housing Development Authority and Aliza Flores from the Inner City Christian Federation.
The Michigan State Housing Development Authority (MSHDA) serves as a catalyst for housing and homeownership to help the people of Michigan. They focus on three key areas: 1) enabling homeownership 2) developing affordable housing and 3) ending homelessness.
The Down Payment Assistance program allows MSHDA to offer several initiatives to help individuals and families get into homes. With a MI Home Loan, first-time home buyers statewide, and repeat homebuyers in targeted areas, are eligible to receive down payment assistance of up to $7,500 as a second lien on their home.
There are no payments on this loan, it sits as a lien on the house until you sell, refinance or transfer ownership interest. MSHDA partners with banks across the state to determine what you’re eligible for and provide information about MSHDA loans. The only investment buyers are required to make is 1% on the transaction, which means home buyers can get into a $100,000 house for as little as $1,000 down.
Down Payment Assistance Qualifications
- First-time home buyers who have not owned a home in the last 3 years
- The sale price of the home must be $224,500 or less
- Minimum credit score of 640
- Applicants must also attend a Home Buyer Education course
Home buyer Education Program Topics
- Mortgage Loans
- The Closing Process
- Avoiding Predatory Lending & Foreclosures