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Demystifying the Credit Score: Your Key to MSHDA’s Down Payment Assistance (DPA)

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This BLOG discusses what credit score is needed for MSHDA’s down payment assistance program.

Dreaming of owning a home in Michigan? The MSHDA down payment assistance program can be a game-changer, offering a helping hand with a crucial part of buying a home – the down payment. But before you get excited, one question might be lingering: What credit score do I need to qualify?

Understanding the Score:

The MSHDA program requires a minimum credit score of 640.  This score is derived from pulling a tri-merged report from the three major credit reporting bureaus, Experian, Trans Union, and Equifax, using FICO scores.  The middle of the three scores is used to determine the representative credit score.

Beyond the Minimum:

Remember, the minimum is just the starting point. While a 640 will get you considered, a higher credit score can significantly benefit you:

  • Increased Approval Chances: A good credit score demonstrates responsible financial management, making you a more attractive borrower to lenders and increasing your chances of program approval.
  • Favorable Loan Terms: Although MSHDA has one interest rate for all down payment assistance programs, a higher score often translates to more options with regard to financing potentially saving you money over the life of your mortgage.
Getting the Right Information:

While this blog provides a general overview, the best way to get accurate and personalized information is to connect with John Higgins, Senior Loan Officer Mortgage 1, Inc NMLS 136061 an MSHDA-approved lender. John Higgins can assess your individual circumstances, including your credit score, and determine the exact requirement for the specific program you’re interested in.

Taking Action:

Ready to explore your MSHDA options? Here’s what you can do:

  1. Check your credit score: Obtain a free copy of your credit report from each major credit bureau (Equifax, Experian, and TransUnion) to ensure accuracy and identify any potential issues. A great resource can be found at Investopedia.com for free credit reports and credit score options
  2. Connect with John Higgins, Senior Loan Officer Mortgage 1, Inc NMLS 136061, an MSHDA-approved lender: John can guide you through the program specifics, assess your eligibility, and navigate the application process.
  3. Explore MichiganDPA.com for complete info on down payment assistance options: Find comprehensive program information, eligibility requirements, and a link to a FREE mortgage pre-approval.

Remember, owning a home is a significant milestone in life, and the MSHDA program can help make it achievable. By understanding the credit score requirements and taking the right steps, you can unlock the door to your dream home in Michigan.


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