First Time Home Buyer Mortgage Loan Programs offered by MSHDA
Are you dreaming of someday owning a home? Well that dream maybe closer to reality than you think. The Michigan State Housing Development Authority or MSHDA, offers a variety of home mortgage programs that can help you purchase your very own home as well as up to $7500 in down payment assistance.
- FHA, VA, Rural Development and Conventional Loans.
- Safe, Fixed-Rate Mortgages with 30 Year Terms.
- Maximum Purchase Price up to $224,500.
- Single-Family Homes, Condos, Specific Newer Permanently Affixed Manufactured Homes.
- Buyer’s annual household income not to exceed MSHDA limits of $60,400 – $108,000 (depending on County and family size).
- Must be a First Time Home Buyer (in non-targeted areas)
- Can be a previous homeowner in targeted areas.
You can see a complete list of these targeted areas at the MSHDA website.
Down Payment Assistance Loans (DPA) Up To $7500
The MSHDA programs also offer DPA Loans up to $7500, making purchasing a home less of a financial burden up front. Combined with a MSHDA first mortgage, a DPA loan is:
- A second mortgage loan up to $7500.
- Zero interest and no monthly payments.
- Used toward down payment, closing costs and prepaid escrow expenses.
Eligible Home Buyers must also:
- Contribute a minimum of 1% of the purchase price.
- Complete a home buyer education class.
How Do You Get Started?
Contact your bank, credit union or mortgage lender and ask for a MSHDA mortgage. You can also enroll in a MSHDA home buyer education class which is offered free of charge. You can find participating counselling agencies online at michigan.gov/mshda.
You can also call Scot Veneklase at Mortgage One. Scot has many years of experience in the lending industry and is up to date on all of the Mortgage options available. You can also download his Mortgage App to calculate payments, contact Scot and more.
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