The Michigan State Housing Development Authority (MSHDA) introduced a new down payment assistance program for eligible, first time home buyers purchasing in the 49442 zip code.
The “Step Forward Down Payment Assistance” program is a $15,000 forgivable loan and is to be used in conjunction with the MSHDA MI Home Loan first mortgage for first time buyers.
We’re happy to introduce the program because, unlike the current MSHDA down payment assistance program, it’s a forgivable loan. In five years, if the borrower still occupies the home as their primary residence, the loan is completely forgiven. The loan is forgiven 20 percent each year until the five-year mark is reached.
Additionally, it’s a complete $15,000 and can be used towards the down payment, closing costs and escrows. If there is money left over, we will use it to reduce the principal loan balance on the new mortgage.
The new program can be used with FHA, Rural Development, VA and Conventional MSHDA MI Home Loans. According to MSHDA, the interest rate is typically lower than the other down payment assistance programs offered.
MSHDA allocated $20 million for the Step Forward Down Payment Assistance program and funds will be distributed on a first come, first served basis. The program is available in 61 eligible zip codes in 10 Michigan counties. The sales price limit follows MSHDA MI Home Loan guidelines and is $224,500 for the entire state. Contact us for a complete list of eligible zip codes.
The Step Forward Down Payment Assistance program will be available for new purchases on or after October 8, 2018. Eligibility is based on credit score, total household income, appraised value of the home available for purchase and more according to MSHDA guidelines.
If you have questions, or to see if you qualify for the Step Forward Down Payment Assistance program, give us a call at 231-799-2606. We’re here to help!