MSHDA Step Forward $7,500 Down Payment Assistance

• MI HOME LOAN

  The MI Home Loan is a mortgage program for first-time
  
  homebuyers statewide and repeat homebuyers in targeted areas. My friends Burney and Rosemarie Ashley at Capital Mortgage Funding can help you get your started.  Call them at 586-585-2626 and tell them that I sent you. 
  
  
  
  • Down Payment Assistance up to $7,500. (Homebuyer Education class required.)
  • Available to first-time homebuyers (have not owned a home in the previous three years) statewide and repeat homebuyers in targeted areas.
  • Household income limits apply and can vary depending on family size and property location.
  • All adults in the household MUST apply and credit qualify (except dependents 18 years of age and older that are full-time students).
  • Maximum sales price is $224,500.
  • Minimum credit score of 640 required or 660 for multiple-section manufactured homes.

• MI HOME LOAN FLEX

  The MI Home Loan Flex is a mortgage program available statewide. This mortgage may be a better option for some borrowers because it has more flexible eligibility requirements.
  The overall eligibility requirements are:
  • Down Payment Assistance - 4% of the purchase price, not to exceed $7,500 (Homebuyer Education class required.)
  • Available to homebuyers statewide.
  • All adults in the household DO NOT need to apply, only qualifying borrowers will be underwritten for credit, assets and income.
  • Collections and judgments DO NOT necessarily need to be paid off; the lender will follow the AUS findings.
  • Household income limits can vary depending on family size and property location.
  • Maximum sales price is $224,500.
  • Minimum credit score of 660 required.

• MORTGAGE CREDIT CERTIFICATE (MCC)

  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.
  • Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability. A tax credit is a dollar for dollar reduction in tax liability.
  • The tax credit is allowable every year for the life of the original mortgage (up to 30 years).
  • Available to first-time homebuyers statewide and repeat homebuyers in targeted areas.
  • Household income limits can vary depending on family size and property location.
  • Maximum sales price is $224,500.

• HOUSING EDUCATION

  Lender Referred Individual Counseling
  Borrowers already working with a MSHDA Lender can be referred to a MSHDA or HUD approved agency by the Lender. This 3-hour maximum Homebuyer Education session is based on the borrower’s individual needs, and mortgage product.
  
  
  Borrowers electing this type of Homebuyer Education must provide a completed Lender Referral Document to the MSHDA or HUD agency at the time of the service. Because housing educators providing this service work with many clients each day, borrowers must contact the agency well in advance of loan submission to secure an appointment, and ensure they don’t encounter delays in the closing of their mortgage. Your clients can locate a MSHDA or HUD Housing Education Agency within their community by visiting our Housing Education Locator or the HUD website to find a local agency.
• Online Homebuyer Education
  MSHDA or HUD approved Housing Education Agencies may also offer online Homebuyer Education. To utilize the online education option, borrowers must contact an approved MSHDA or HUD approved agency to obtain information on the registration process. Agencies providing this service can be found by visiting our Housing Education Locator.
  
  Once borrowers complete this four-to six-hour online course, which includes quizzes, they must contact the MSHDA agency and speak with a certified counselor. The counselor will provide a review of the session content, the borrowers’ mortgage documents and discuss other topics like PITI, budgeting and savings, moving costs and foreclosure.
• Homebuyer Education Workshops
  Another option for homebuyers is to attend a Homebuyer Education Workshop at a MSHDA or HUD approved agency. Workshops require a six to eight hour commitment.
  Visit MSHDA’s Housing Education Locator or the HUD website to find a local agency.
  Regardless of the type of Homebuyer Education completed, the agency providing the services will issue a Certificate of Completion to the borrower. This document must be submitted to MSHDA along with all loan documents.

• AM I READY TO BUY A HOME?

  
  Buying a home is a big step. Whether it’s your first home or your next home, my good friends Burney & Rosemarie Ashley

  
  

  of Capital Mortgage Funding who can help determine if you’re ready and be a resource for you throughout the process.  Call them at 586-585-2626.
  
  

  
  
  
  
  
  

  I make a good salary. Am I still eligible?

  These programs are more accessible than you may think. MSHDA loans are available to potential homebuyers with an annual household income as high as $123,620. First-time homebuyers and previous homeowners are eligible.

  What homes can be purchased?

  Your dream home is within reach. Homes priced up to $224,500 are eligible for a MSHDA loan and a Michigan down payment. Your home can be a new or existing single-family home, new or existing multiple-section manufactured home (built after 6/14/1976), or a condominium.

  Is this a grant or a loan?

  The Michigan down payment loan is a second mortgage loan that is due back to MSHDA when the first mortgage is paid in full, the house is sold, refinanced or homeownership interest is transferred. Since no interest accrues and there are no payments, you may find this loan a better option than borrowing from your retirement fund, depleting your savings account or using money from family. The Michigan down payment of up to $7,500 can only be used in conjunction with a MSHDA mortgage. Review program details | See if you are eligible >