It is a second mortgage that must be used in conjunction with one of MSHDA’s first mortgage programs, MI First Home or MI Next Home.
Designed for low- to moderate-income homebuyers, depending on the location and size of the property, this program requires the borrower to attend a homebuyer education class offered by an MSHDA- or HUD-approved agency situated in Michigan.
The DPA is a zero-interest, non-amortizing loan with no monthly payments; it is due only upon the sale or transfer of the property, or upon the refinanced or paid-in-full repayment of the first mortgage.
Requirements for Eligibility:
MI First Home Down Payment Assistance is one of the programs offered by MSHDA (DPA). Under this scheme, the maximum DPA is $7,500. To qualify as a borrower, you must meet the following criteria:
Applicants must successfully complete a Homebuyer Education course.
➣ The program is open to first-time homeowners throughout the state and to repeat homebuyers in select localities.
➣ Applicants must have a credit score of at least 640, OR 660 for multi-section prefabricated homes permanently affixed to a foundation, built after June 14, 1976, and taxable as real estate (not located in a rent/lease community).
➣ All individuals in the household planning to inhabit the residence must co-apply for the mortgage loan and meet credit requirements, with the exception of children who are proven to be full-time students.
The MI First Home DPA is available to repeat homebuyers in the following targeted areas:
Note: All data cited above were accurate at the time of publishing but may no longer be current; for the most up-to-date information, see the program’s website.
The staff at FHA.com conducted research on down payment assistance programs and/or grants.
Please keep in mind that any of the programs featured on this website may require a second mortgage with payments forgiven, postponed, or subsidized in some way until the mortgaged property is sold.
While FHA.com compilation is not exhaustive, it might serve as a beginning point in your search for the appropriate down payment assistance program or grant.
The consumer is responsible for contacting these institutions and enquiring about the specifics of each program.
First Time Home Buyer Grant Michigan Programs
Assistance with the Down Payment on Your First Home in Michigan
MI First Home Down Payment Assistance is one of the programs offered by MSHDA (DPA).
Under this scheme, the maximum DPA is $7,500. This aid is provided in the form of a zero-interest, non-amortizing loan with no monthly payments.
Michigan Next Home Down Payment Assistance
Down Payment Assistance (DPA) is a program offered by the Michigan State Housing Development Authority (MSHDA) to assist repeat homebuyers in purchasing a home.
Assistance is offered in the form of a zero-interest, non-amortizing loan that requires no monthly payments.
What is down payment assistance Michigan?
Down Payment is available to qualified borrowers who meet the eligibility which includes but is not limited to, income, credit and property type requirements. Up to $7,500 in down payment assistance; can be used for borrower paid closing cost, pre-paid expenses and down payment.
Is there a first-time home buyer tax credit in Michigan?
The Mortgage Credit Certificate (MCC) program provides housing assistance by issuing a federal tax credit to first-time homebuyers statewide and repeat homebuyers in targeted areas. Program Description: Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability.
Can I buy a house with no money down in Michigan?
100% financing in Michigan with a zero down mortgage buying a home with no down payment is still an option for many home buyers. There are even options to buy a home and still avoid PMI (Private Mortgage Insurance).
What is a Mshda loan?
The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.
How long does it take Mshda to approve a loan?
A complete list of the requirements and application to become a MSHDA MI Home Loan Lender can be found at the following link MSHDA New Lender Application. If all of the required documentation is submitted, application review will be completed in approximately 3 weeks.
Is MSHDA a grant?
A MI Home Loan can be a great mortgage option for single mothers, college students, and more. That’s why some refer to a MSHDA loan as a single mom grant for home buying. At the end of the day, it’s a great loan option for anyone. The MI Home Loan Flex requires only borrowers to meet the requirements.
Do I qualify for MSHDA?
To qualify, you must meet the following requirements: Complete Homebuyer Education classes. Have a minimum credit score of 640-660 (depending on the type of home). Meet household income limits based on area and household size.
Is MSHDA an FHA?
The Michigan State Housing Development Authority or MSHDA program is a down payment assistance program available to home buyers in Michigan. The easiest way to explain this program is that it’s an add on to an FHA, Conventional, VA, or Rural Development loan.
What is a FHA loan Michigan?
A Michigan FHA loan is a home loan that is insured by the Federal Housing Administration. Home buyers are able to purchase a home with a low-down payment as low as 3.5% of the purchase price.
What is the minimum credit score to buy a house in Michigan?
State First-Time Homebuyer Programs To qualify, homebuyers need a FICO® credit score of at least 640 and a debt-to-income ratio under 45%.
What is considered low income for a single person in Michigan?
They become “very low-income” at $34,900 or less and “extremely low-income” at $20,950 or less. In Ann Arbor, these numbers rise to $64,400, $42,100 and $25,250, respectively, taking into account differences in local median income.
What is MI Home Loan Flex?
MI Home Loan and MI Home Loan Flex MSHDA provides a variety of products to help buyers achieve and afford homeownership. Their flagship down payment assistance (DPA) programs provide up to $7,500 in assistance, which can be used towards the down payment, closing costs, and prepaid and escrow items.
How much are closing costs in Michigan?
In Michigan, closing costs usually amount to around 1.8% of a home’s sale price, not including realtor fees. With a median home value of $234,954, sellers can expect to pay around $4,118 at closing.
How much do I need to make to afford a $250000 house?
How much do I need to make for a $250,000 house? A $250,000 home, with a 5% interest rate for 30 years and $12,500 (5%) down requires an annual income of $65,310.
Can you write off closing costs?
If you itemize your taxes, you can usually deduct your closing costs in the year in which you closed on your home. If you close on your home in 2021, you can deduct these costs on your 2021 taxes.
Is there a first time homebuyer tax credit for 2020 IRS?
Tax credit in general for first time homebuyers, there is a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately).
What is the best program for first time home buyer?
FHA loans are the most popular first-time home buyer programs. These loans are insured by the Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development (HUD).
How much is the down payment for MSHDA?
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.
