07.20.2020

Down Payment Assistance Programs

Back to Blog

Tired of renting? Don’t have a lot of money to put down on a home? We have solutions.

One of the down payment assistance programs that we offer at Michigan First Mortgage is the MSHDA program. You can also get an FHA, conventional, VA, and rural development loan. You can qualify to get up to $7,500 in down payment assistance towards your required down payment and also cover closing costs. The member is required to use 1% of their own funds towards the transaction. MSHDA comes with a standard set rate which is controlled by MSHDA and changes based on what the standard rates are. Two of the main qualifications for the MSHDA program are a minimum credit score of 640 and purchasing in a zip code where there are income limits. With the standard Michigan home loan, everyone in the household over the age of 18 must be considered when it comes to the qualification, even if they are not on the loan.

There is also a Michigan Home Loan Flex program where you do not need to consider other people in the household, but the main difference is the set interest rate. The standard $7,500 MSDHA down payment assistance is a close second and non-forgivable (it gets paid back). The processing time is longer for a MSHDA loan. MSHDA has to first get a clear to close from the lender before they can do a final review. In order to get approved for the MSDHA down payment assistance program, the member is required to take a homeownership class. In conclusion, these down payment assistant programs are very helpful for first-time homebuyers. Not only can it make purchasing a home affordable, but it also helps make homeownership dreams a reality.

When getting a pre-approval for a home mortgage you can also get pre-approved for the down payment assistant programs. Remember that the main two qualifications are credit score and income limits. The full $7,500  is not always granted in some cases but that is the maximum amount.

You may also like:

08.01.2020
FHA vs. VA Loans
11.03.2020
Are You Ready for a Mortgage? Questions to Ask Yourself
10.29.2020
Renting vs. Buying