Homeownership

Table of Content

• Investment Property Loans
• Loan Options - Conventional, MSHDA, FHA, VA, USDA & More
• MSHDA Loan: Guide to MI Home Loan and DPA
• Mortgage 1: Michigan’s Most Trusted Lender for First-Time Home Buyers
• Should First-Time Home Buyers Choose MSHDA’s MI Home or MI Home Flex?
• FHA Refi and Purchase Loans
• Can I Get A MSHDA Loan With Bad Credit?

It has a 0% interest rate and is a lien on title to the property. Whether you are a first-time homebuyer or a seasoned veteran of the housing market, MSHDA has a mortgage product to meet your needs. Contact one of our Experienced Lending Partners today for more information! Simply click on one of our mortgage programs or the Mortgage Credit Certificate below to find a lender in your area. The Housing Agent conducts a Housing Quality Standards inspection to determine if the selected unit can be approved.

The VA may be able to provide you some assistance if you run into difficulty making payments. As Michigan’s top MSHDA lender, Mortgage 1 is ready to help you understand what Michigan loan programs are right for you. We’ve helped many first-time home buyers navigate MSHDA’s Mi Home and MI Home Flex programs, and we can help you find answers to all your home-buying questions. In addition to buying a home, it also offers programs for improving existing properties and dealing with foreclosure. Borrowers may be eligible for MI 10K DPA Loan on FHA, RD and Conventional loans up to a maximum of $10,000. This can be applied to down payment, closing costs and prepaid expenses .

Investment Property Loans

The down payment assistance program helps cover many of the upfront costs of homeownership. The biggest benefit to a MSHDA loan is that it provides opportunity for homeownership where it might not otherwise be possible, due to the large barrier of saving up enough money for a down payment. Meaning, home buyers can purchase a home with very little money down. The MSHDA program only requires you to provide at least one percent of the total loan amount. The primary benefit to a MSHDA loan is the down payment assistance program , which gives people an opportunity to purchase a home without all of the typical upfront cash.

In the first example, assume the home’s value is $130,000. That is enough to pay the $100,000 mortgage balance, the $7,500 down payment assistance MSHDA loan and closing costs. So, you can get the $7,500 down payment assistance with either loan programs and for purchasing a home anywhere in the entire state of Michigan. Borrowers may be eligible for MI DPA Loan on FHA, RD and Conventional 97% loans up to a maximum of $7,500.

Loan Options - Conventional, MSHDA, FHA, VA, USDA & More

MSHDA offers a series of loans to home buyers, both first time and repeat buyers, as well as current homeowners. There are three loan products that are offered through MSHDA. Household income limitsapply and can vary depending on family size and property location. The MI Home Loan program is a mortgage product that is available to first-time homebuyers state-wide and repeat homebuyers in targeted areas. All homebuyers work directly with a participating lender.

Or, you could find yourself in a negative equity position if home values drop. So, for example, if you’re purchasing a home for $150,000, then you need to be able to bring $1,500 to the closing table as down payment. So, someone who owned a home five years ago will qualify for the program.

MSHDA Loan: Guide to MI Home Loan and DPA

You can find these classes through your lender or by looking on MSHDA’s website. I don’t recommend trying to Google things like First time home buyer education class. You will need to register, attend and get a certificate of completion for a homebuyer education class. The certificate will need to be submitted to your lender. Your lender will then submit your certificate to MSHDA along with the entire lending package.

The Michigan State Housing Development Authority or MSHDA program has two basic options for home buyers. The first is a down payment assistance program available to home buyers in Michigan. The second is a program that offers a significantly reduced interest rate. The easiest way to explain this program is that its an add on to an FHA, Conventional, or Rural Development loan.

This creates potential options for home buyers to qualify for a MSHDA program, even if one member of the household has too low of a credit score, for example. A jumbo mortgage is a loan amount above conventional conforming loan limits. Call us to discuss if a jumbo mortgage loan program is suited for you. VA Streamline – Interest Rate Reduction Refinance Loan The VA Interest Rate Reduction Refinance Loan lowers your interest rate by refinancing your existing VA home loan. No appraisal or underwriting package is required when applying for an IRRRL. An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.

For example, if you bought a home and received $7,500 in down payment assistance, you would need to pay the full amount of $7,500, along with your mortgage balance, at the time of selling your home. In addition to the mortgage loan, you will need to repay the MSHDA loan back. It will be the amount of down payment assistance that you accepted. While the down payment assistance loan doesn’t require monthly payments, it does have to be paid back.

MSHDA administers the largest statewide HCV program in the nation through a unique partnership with Civil Servant employees and third-party independent contractors known as Housing Agents. Program participants may select the unit of their choice ranging from single family homes to units within multifamily developments. The Michigan State Housing Development Authority offers Down Payment Assistance to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments. To qualify for the loan, you need to take a Michigan homebuyer education class.

Inlanta serves many investor clients who need unique and detailed loan programs to finance and renovate income properties. Contact Us to discuss all of your investment financing options. The MI Home Loan Flex requires only borrowers to meet the requirements.

FHA Refi and Purchase Loans

Given the bond program through MSHDA, there is a good chance that most mortgage products won’t be able to compare, in terms of rates, with a MSHDA loan. You’re likely to have a lower interest rate unless interest rates dropped dramatically since the time you closed on your MSHDA loan. A refinance is when you get a new mortgage on your home. Often homeowners do it to pull equity out of the home or get a lower interest rate.

Someone who lost their home during the Great Recession and has been renting since will also qualify. To be considered a first time home buyer by MSHDA, you can’t have owned a home in the previous three years. At the end of the day, it’s a great loan option for anyone. The MI Home Loan is the most common and has better terms. However, the Flex program does offer more flexibility for a home buyer.

SEE YOUR CREDIT SCORES   From All 3 Bureaus

Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer. Go to Neighborhood Enhancement The NEP program provides MSHDA funding statewide for activities directly tied to stabilization and enhancement of Michigan neighborhoods by nonprofit 5013 agencies. Go to Resources & Related Links State and national links to homeless and special housing needs information. With any home loan product, it is crucial to have the most accurate and current data to ensure quality pricing and service. • Applications for all MSHDA Homeownership programs made on or after June 8 will require full interior/exterior appraisals.

Of course, there are cases where you need to refinance due to things like divorce. Given the 50 percent divorce rate, you may need to refinance your MSHDA loan. Lastly, and not common, is you will need to pay back the MSHDA down payment loan when you go to pay your home off in full. You can find a free credit score on sites like CreditKarma or Credit Sesame. These sites will often have recommendations for you on how to improve your credit score. Home buyers with FHA loans or USDA loans can be at just as much risk.