What is MSHDA? How Do you quAlify?
Are you dreaming of owning your own home but feeling overwhelmed by the financial hurdles? You're not alone. Thankfully, the Michigan State Housing Development Authority (MSHDA) offers incredible support for first-time homebuyers, and sometimes even those who have owned before. Let's dive into how MSHDA can help you step through your front door sooner than you thought possible.
Who Qualifies as a First-Time Homebuyer?
Believe it or not, even if you've owned a home before, you might still qualify as a first-time homebuyer with MSHDA. Here's how:
Haven't owned a home in the last 3 years? You're considered a first-time buyer again.
Interested in buying in certain areas? MSHDA has "targeted counties" where previous homeowners can buy a new home without currently owning one.
MSHDA's Two Main Programs
1. Lower Interest Rates: The first gem from MSHDA doesn't directly assist with down payments, but it does offer something almost as valuable: lower interest rates. Unlike the ever-fluctuating rates of traditional mortgages, MSHDA's rates are more stable, changing infrequently. This program is perfect if you've already got your down payment sorted or if a lower monthly payment would make your financial life easier.
2. Down Payment Assistance (DPA) Program: The star of the show for many first-time buyers is the DPA program, offering up to $10,000 towards your down payment and closing costs. But remember, this isn't a grant—it's a loan that doesn't require monthly payments and is interest-free. You won't need to repay it until you sell, refinance, or change the home's use. Plus, you're not restricted from using your own money alongside MSHDA's assistance.
Important Details to Remember
You must contribute at least 1% of the sale price from your own funds, but having more saved up is wise.
When buying a home, you'll need to pay an earnest deposit and an appraisal fee upfront, which count towards your 1% contribution.
Depending on your financial situation, you might need additional savings as "reserves" after closing—for peace of mind and future needs.
Keep your debt-to-income ratio under 45% to qualify for MSHDA loans.
Why Choose MSHDA?
As a certified MSHDA Loan Officer and a top producer statewide, I've seen firsthand how this program opens doors for Michiganders. With extensive experience in guiding buyers through the MSHDA process, I'm passionate about helping you find your way home.
What's Next?
This blog has only scratched the surface of what MSHDA offers. Stay tuned for more insights, and if you or someone you know is considering the MS-HDA programs, let's connect. Check out my website to apply online or follow me on social media for more updates. Remember, like every dog has its day, every person deserves a home!
CalCon Mutual Mortgage LLC, dba OneTrust Home Loans is an Equal Housing Lender NMLS #46375; 3838 Camino del Rio N Suite 305, San Diego, CA 92108.Corporate phone (888) 488-3807. For more licensing information visit: https://onetrusthomeloans.com/licensing-information/. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice. This is an Advertisement.
