The MSHDA Rate Relief Mortgage Program is a brand new initiative aimed at making homeownership more affordable for low-income, first-time buyers in Michigan. As part of a newly formed partnership between the Federal Home Loan Bank of Indianapolis and the Michigan State Housing Development Authority, this program offers savings and increased accessibility for homeownership by reducing mortgage rates by one full percentage point for those who qualify.
The program opened Oct. 21, 2024, and will continue until funds are depleted on a first-come, first-served basis.
Beyond just the interest rate reduction, MSHDA also offers up to $10,000 in down-payment assistance, homebuyer education, and counseling services, making it a true support system for first-time buyers needing the extra help.
What Does This Mean for Michigan First-Time Homebuyers?
Lower Monthly Mortgage Costs: The reduction of mortgage rates by 1% will make mortgage payments more manageable for Michiganders while keeping more money in their pockets every month.
Increased Accessibility: This program helps low-income families gain access to affordable housing, an important step in wealth-building and financial stability.
What is the Eligibility Criteria?
Income Limits: Borrowers must be a first time homebuyer and must have a qualifying income at or below 80% of the Area Median Income for their area.
Minimum Credit Score: A minimum credit score of 640 is required to qualify.
Eligible Homes: New and existing single-family homes are eligible under the program.
Firm Price Limit: The maximum purchase price of a home must not exceed $224,500, in line with Michigan state law.
How the Program Works
Lender Requirements: To take advantage of the program, buyers will need to work with a lender that is both a member of FHLBank Indianapolis and a MSHDA-approved participant.
Funding: FHLBank is supporting the program by purchasing a $50 million MSHDA bond. The program opened Oct. 21, 2024, and will continue until funds are depleted on a first-come, first-served basis.
Apply for Michigan’s Rate Relief Mortgage Program
Julie Krumholz from Superior National Bank is a participating FHLBank Indianapolis member and MSHDA lender. Contact Julie today and get started on the application process for this great opportunity for first time buyers in Michigan.
