Can’t Afford a Down Payment? Michigan Down Payment Assistance May Help
So you have found the perfect home, your credit is in good standing and you have no problem making the monthly payments. Only there is one problem – you do not have enough money saved for a down payment and the thought of saving that large amount of money seems daunting or nearly impossible.
This is true for many home owners where high rent payments, student loans and other expenses leave very little left over for savings. The good news is that there are several Michigan down payment assistance programs available. In this article we will discuss 3 loans that either offer 100% financing with no down payment or provide help with money down. Keep reading to find out which loan program is right for you.
Rural Development Loans/USDA Loans
USDA Loans offer 100% financing.
This program is unique in the fact that the desired property must be in a rural location. For those Michigan buyers that enjoy or even prefer living in rural areas, this may be a perfect fit! This doesn’t necessarily mean you need to pack up and move “up north”. You may be surprised what qualifies as a rural area. Contact a Michigan USDA Lender to lean more about what areas will qualify.
Buyers also must have a minimum credit score of 640 and plan on using the home as their primary residence.
Learn more: USDA Loan Requirements and Eligibility
MSHDA Loans
MSHDA loans do not offer a zero down payment but they do provide up to $7500.00 in down payment assistance which can significantly decrease out of pocket expense. Borrowers will need to contribute a minimum of 1 percent of the sales price but this may come from an approved gift source.
The unique requirement about this loan is that borrowers must take a home buyer education class.
Like USDA loans, buyers must have a minimum credit score of 640 and the desired property must be used as their primary residence.
Learn More: MSHDA Loan Requirements and Eligibility
Michigan VA Loans
Buyers may be approved for a loan amount up to $424,100.00 with no down payment required if they have served at least 90 days in the US military.
If the borrower can produce a certificate of eligibility, this Michigan down payment assistance program may be the most advantageous out of these 3 loans. There are lenient credit requirements, no PMI requirements and higher DTI (Debt to Income) ratios are accepted.
Learn More: VA Loan Requirements and Eligibility
Ready to See if You Qualify for a Michigan Down Payment Assistance Program?
Don’t let a lack of down payment keep you from pursuing the American dream of homeownership. If you are ready to apply for one of these loans or simply have questions about eligibility, contact Julie Krumholz from Superior National Bank today! Julie has vast experience in USDA loans, VA loans, MSHDA loans, FHA loans and more. Contact Julie today to determine which loan will best suit your needs.
