This week, the Michigan State Housing Development Authority aka MSHDA announced that it was expanding its Down Payment Assistance program in a strategic move to bolster the economy and the housing market. The agency announcement and press release can be reviewed in total here.
To summarize, first time home buyers who meet income and credit eligibility requirements will be able to apply for a MSHDA grant up to $7,500 to assist with down payment and closing costs for a new home. Potential buyers should be prepared to provide 1% of their own funds towards the purchase. MSHDA’s interest rates have proved to be quite competitive in recent years and the program enables buyers who are struggling with cash reserves to purchase with this assistance. Income limits have also been relaxed to enable more potential homeowners to take advantage of this opportunity
Perhaps the biggest and most surprising news to come out of this week’s announcement was the MSHDA NEXT program which opens up grant money (again up to $7,500) to current home owners who want or need to move to another home! Again, recipients must meet income and credit qualifications but this program is fairly generous and should provide many homeowners to move forward if they’ve been considering a change in location.
Last, but not least…the Mortgage Credit Certificate can ALSO be used in conjuction with the above programs. This little gem of a program is one that we’ve recommended to a number of clients who qualified when funds were available. It allows you to get back up to 20% of your TOTAL interest paid yearly EVERY year that you own the home. A nifty way to save money or to extend your purchasing power. Either way, we can’t stress enough the importance of utilizing a lending professional who knows their way around when it comes to executing the loan effectively. Spring is around the corner…we hope! Happy Home Shopping!
It’s important to contact a qualified lender to assist with this process. If you or someone you know could benefit from this program, feel free to contact us for a referral to one of our lending partners.