Are you currently renting and feel that homeownership is out of your reach because of the down payment? We have some exciting news. On October 8th, the Step Forward Down Payment Assistance Program was launched. This program provides $15,000 in down payment assistance to borrowers, if used in conjunction with a MSHDA loan.
A MSHDA loan is a loan program available to buyers that fall within a specific income range and have a minimum credit score of 640. The Michigan State Housing Development Authority (MSHDA) offers a Down Payment Assistance to borrowers. Borrowers will only be required to contribute 1% of the property value to the down payment.
Learn more: What Are the Requirements for a MSHDA Loan?
The Step Forward DPA Program is Only Available for a Limited Time
This exciting opportunity is available for a limited time only. The Step Forward program has allocated 20 million dollars to each state. If you divide 20 million by $15,000 a loan that’s just a little over 1300 loans available in the state. And keep in mind, the program has already been in effect for almost 3 weeks. With an opportunity like this, we don’t expect the program to last long so contact a MSHDA approved lender ASAP.
Additional Benefits of Step Forward DPA Program
So one main appeal of this program is that it requires very little out of the buyer’s pocket up front. The ability to put down a larger down payment can actually save homeowners money long term as PMI rates and interest rates may be lower. Especially if you can put down more than 1%. For example, if you take the $15,000 down payment assistance and contribute another $5,000 and put $20,000 on a $100,000 property, you’ve just put down 20% and eliminated your PMI payment.
What Property Locations are Eligible?
There are specific properties that qualify for the Step Forward program. These properties include a total of 61 zip codes in 61 Michigan zip codes in Bay, Genesee, Ingham, Jackson, Macomb, Muskegon, Oakland, Saginaw, Washtenaw and Wayne counties. The goal is to stabilize these neighborhoods and promote homeownership in areas that still may be affected by foreclosures.
Contact a MSHDA Lender in Michigan to See if You Qualify
If this sounds like something you might be interested in, you cannot go to just any mortgage lender. You need to consult with a MSHDA approved lender and not all lenders are approved or participating. Julie Krumholz is a MSHDA approved lender with over 30 years of experience in the mortgage industry. Her office is located in Clinton Township, Michigan at Superior National Bank. Contact Julie today to learn more about the Step Forward Program while funds are still available.
Call Julie Krumholz at: 586-382-5482
