Last Updated on August 7, 2022 by Danielle McDonald
Mortgage Assistance for Homebuyers in Michigan
Michigan First Home Down Payment Assistance
To help homebuyers buy a home, the Michigan State Housing Development Authority offers down payment assistance (DPA). This is a second mortgage and must be used with the MSHDA’s MI First Home mortgage or MSHDA’s MI Next Home mortgage. Additionally, this program is for homebuyers with low- or moderate incomes, depending on their home’s location and family size. The borrower must complete a homebuyer education course from either an MSHDA-approved agency or HUD-approved agency in Michigan.
The DPA is a non-amortizing, zero-interest loan that has no monthly payments. It is due only upon the sale or transfer of the property.
MSHDA offers the MI First Home Down payment Assistance (DPA) program. This program allows for a maximum DPA of $7,500. This program is open to both first-time homebuyers throughout the state and repeat homebuyers in specific areas. The minimum credit score requirement for applicants is 640 or 660 for multi-section manufactured homes permanently attached to a foundation. However, these homes must be built after June 14, 1976 and are taxed as real property (not in a rent/lease area). Also, all adult members of the household who intend to occupy the property must apply and credit qualify for the mortgage loan. But children who are full-time students cannot be accepted. Additionally, All applicants must take a Homebuyer Education course.
Repeat homebuyers from the following targeted areas can qualify for the MI First Home DPA:
Alcona, Alger, Allegan, Alpena, Antrim, Arenac, Baraga, Barry, Benzie, Berrien, Branch, Cass, Charlevoix, Cheboygan, Chippewa, Clare, Delta, Emmet, Gogebic, Traverse, Gratiot, Houghton, Ingham, Iosco, Ionia, Iron, Kalamazoo, Keweenaw, Lapeer, Leelanau, Lenawee, Luce, Manistee, Marquette, Mason, Mecosta, Menominee, Missaukee, Montcalm, Montmorency, Newaygo, Oceana, Ogemaw, Ontonagon, Osceola, Otsego, Presque Isle, Roscommon, St. Clair, St. Joseph, Sanilac, Schoolcraft, Tuscola, Van Buren, Washtenaw, and Wexford.
Michigan Next Home Down Payment Assistance
To help homebuyers buy a home, the Michigan State Housing Development Authority offers down payment assistance (DPA). You must use this second mortgage in conjunction MSHDA’s MI First Home mortgage or MSHDA’s MI Next Home mortgage.
The MI Next Home Down payment Assistance (DPA) is one of the DPA programs that MSHDA offers. This program is specifically for repeat homebuyers. This assistance comes with a non-amortizing, zero-interest loan that is not subject to monthly payments. It is due only upon the sale or transfer of the property. Maximum DPA is $7,500 or 4% of sales price.
This programme is quite similar to the First-Time Homebuyer Assistance Programs in Massachusetts.
All applicants must be repeat homebuyers in the state and the only acceptable credit score of 660. However, the program does not apply to manufactured homes. The household does not require that all adults in the household apply; only qualified borrowers (repeat homebuyers) will receive approval for credit, assets and income. Additionally, the collections and judgments don’t require payment in return. Borrowers must be below the income limits and these vary depending on family size and location. Also, the property’s sales price cannot exceed $224,000.500 in the state. Lastly, the borrowers must take a homebuyers education class.
Are you interested in the First-Time Homebuyer Assistance Programs in Minnesota?