MSHDA’s (Michigan State Housing Development Authority) mission is to enhance Michigan’s economic and social health through housing and community development activities. Established in 1966, it provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engages in community economic development activities, develops vibrant cities, towns and villages, and addresses homeless issues. MSHDA offers below-market, fixed-rate loans with 30 year terms.
Down Payment Assistance (DPA) may be available from MSHDA to help you purchase your home. It is a second mortgage that must be used in conjunction with MSHDA’s MI First Home or MSHDA’s MI Next Home first mortgage. This program is for low- to moderate-income homebuyers, depending on the home location and your family size. MSHDA’s DPA loan programs require the homebuyer to take a homebuyer education class from a MSHDA approved agency or a HUD approved agency (located in Michigan). The homebuyer education class will give you valuable information as you take that first step toward homeownership. The DPA program lends up to $7,500 in down payment assistance. It works as a second loan along with the MSHDA loan in that it must be paid back. It is paid back when the mortgage is paid off. For instance, if you sell your home the amount you were lent as a down payment would then be due, or if you were to pay off your mortgage or refinance, it would be due.
A few more highlights of the MSHDA-DPA Program:
It is a zero interest, non-amortizing loan with no monthly payments (you will never owe more than you borrowed).
Must be below maximum income limits, based on your household size and location.
You must not have owned a home in the past 3 years for the First Home DPA, unless you are buying in a targeted area.
Your liquid assets must be below $7500 (retirement accounts are not a part of this limit).
Maximum sales price is $224,500.
The minimum borrower investment is 1% of the purchase price.
Minimum middle FICO credit score is 660.
All adults in the household intending to live in the home must co-apply and credit qualify for the mortgage loan. Exceptions are made only for children who are verified to be full-time students. (Only one resident needs to qualify for the Next Home DPA.)
You must use a qualified MSHDA Experienced Lender (luckily you have found one in Marc Edelstein!) Call NOW! 248-658-2643