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Does MSDHA need to be paid back?

Does MSHDA need to be Paid Back Icon

Yes, MSHDA down payment assistance does need to be paid back. While it often gets referred to as a “grant” or “free money,” it’s actually a zero-interest loan. This means you don’t accrue any interest on the amount received and you don’t make monthly payments, but you are still obligated to repay the loan eventually.

Here’s when you typically need to pay back MSHDA:

  • Selling your home:  When you sell your house, you’ll need to repay the MSHDA loan amount in addition to your primary mortgage.
  • Refinancing your mortgage:  If you refinance your original mortgage for a new one, you’ll typically need to pay back the MSHDA loan at that time.

For accurate and up-to-date information on repayment requirements, it’s always best to:

  • Review the specific program guidelines on the MSHDA website.
  • Consult with John Higgins, Senior Loan Officer Mortgage 1, Inc. NMLS 136061 an MSHDA-approved lender who can explain the repayment terms in detail based on your situation and the chosen program.
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