We have some great news for Michigan first time home buyers. MSHDA (Michigan State Housing Development Authority) is launching a new program, Step Forward, on October 8th. This new loan will provide $15,000 in down payment assistance when used in conjunction with a MSHDA loan.
First, what is a MSHDA loan?
The MSHDA Home Loan program is available to first-time homebuyers state-wide and repeat homebuyers in targeted areas. All homebuyers must work directly with a MSHDA approved lender, such as Superior National Bank. Buyers are also required to take a homebuyer education class, have a minimum credit score of 640 and there are income limits that may vary depending on family size and property location.
Learn more: What Are the Requirements for a MSHDA Loan?
One major appeal of a MSHDA loan is that it provides up to $7,500 in down payment assistance. Now, for a limited time, MSHDA is rolling out the Step Forward program which will offer $15,000 toward the down payment – twice as much as the traditional MSHDA down payment assistance.
This money can be used toward the down payment, closing costs, and prepaids/escrows on the purchase of a single-family home. If there is a remaining balance, that amount must be used to reduce the principal balance of the loan.
Step Forward has allocated $20 million to the Step Forward DPA program. Michigan home buyers who are interested should contact a MSHDA approved lender as soon as possible as this program is only available while the funds remain. Also, unlike traditional MSHDA loans that are available state-wide for first time homebuyers, the Step Forward program is available in 61 Michigan zip codes in Bay, Genesee, Ingham, Jackson, Macomb, Muskegon, Oakland, Saginaw, Washtenaw and Wayne counties.
MSHDA loan income limits apply and are based on total household income. These limits vary by county and the number of members in the household, with limits set between $67,300-$130,340.
Looking for a MSHDA Approved Lender?
The Step Forward Down Payment Assistance provides exciting opportunities for Michigan first time home buyers that need a little help with their down payment. If you are in need of a MSHDA approved lender , contact Julie Krumholz today. Remember, this down payment assistance is only available for a limited time while the allocated funds last.
Julie has over 30 years experience in the mortgage industry and has helped hundreds of clients with MSHDA loans, FHA loans, VA loans, portfolio loans and more. If you are looking for a Mortgage expert in Michigan that you can rely on, call Julie today at: 586-382-5482.
