The Michigan State Housing Development Authority (MSHDA) released a turbo charged version of its standard Down Payment Assistance (DPA) loan in 2021. This new DPA offers a loan covering much of the cost of purchasing a home. MSHDA still requires that the home buyer provide a minimum of 1% of the sales price, but this new offering makes purchasing homes up to $224,500 more attainable.
In line with its other DPA loans, MSHDA still requires the home buyer complete a homebuyer education class, not have more than $20,000 in liquid assets, not have a sales price more than $224,500 and not exceed certain income limitations (based on county and household size).
Education Class must be complete
Liquid Assets cannot exceed $20K
Sales Price must be under $224,500
What makes the MI 10K DPA special is the ability to lower the balance of the first mortgage and therefore the monthly payment associated with the purchase and for those larger prices homes makes the minimum investment of 1% of the sale price more attainable. These features of the added down payment assistance, will help countless buyers with access to more homes.
As the State of Michigan recognizes, homeownership leads to greater household wealth, allows for cost certainty of monthly housing payments, and leads to better communities. Homeownership comes with many advantages and this MI 10K DPA makes it one of the best programs available to assist homebuyers with that goal.
For more information on this great program, please visit www.MSHDADPA.com. Check out all the information available there and then start of the process with a free mortgage pre-approval. The Mortgage 1 Team is dedicated to making the dream of homeownership a reality.