MSHDA (Michigan State Housing Development Authority) announced recently that it will be again offering down payment assistance to homebuyers through its MI Home Loan program.
Michigan residents who have not purchased a home in the past 3 years are now eligible in 236 zip codes in Michigan to apply for up to $10,000 in down payment and closing cost assistance. This money is given as a 0% non-amortizing (this means there is no interest due ever) loan that will be due when the property is sold or transfers ownership.
The 236 zip codes that MSHDA indicated as eligible for this loan were identified via census data, and other historical data. They looked into the housing market stability, employment trends, and other factors to finalize this list. In order to receive this loan MSHDA does require the borrower to attend a Homebuyer Education Class.
Household income limits are in place and vary by location. Click here for details. Homes purchased with this loan cannot exceed $224,500 in final sales price and borrowers must have a minimum credit score of 640 to qualify.