Down Payment Help in Michigan
Every state has unique programs that can help homebuyers access funds to buy a home. Instead of reinventing the wheel, The Mortgage Reports made a comprehensive list of homebuying assistance and grant programs for all 50 states. When it comes to closing cost and down payment help in Michigan, borrowers have some options. Here is what we gathered from The Mortgage Reports and the Michigan State Housing Development Authority regarding down payment help.
Michigan Down Payment Assistance
Since many of our readers hail from The Great Lakes State, we believe that having a Michigan closing cost and down payment assistance guide could be helpful. In Michigan, the MI Home Loan program helps first-time homebuyers state-wide and repeat homebuyers in select areas. To access this loan option, borrowers must work directly with a participating lender.
The Michigan State Housing Development Authority (MSHDA) offers down payment assistance (DPA) loans that can provide up to $10,500 to a qualified homebuyer.
- MI DPA Loan: Offers up to $7,500 in down payment assistance statewide!
- MI 10K DPA Loan: Offers up to $10,000 in aid. However, the home in question must belong to a qualified zip code. Consult this zipcode list to see if the home you want can qualify for the 10k loan.
What are the details?
To qualify for this loan program, your household income must fall within certain limits that depend on family size and property location.
- Current Statewide Sales Price Limit : $224,500
- Minimum credit scores:
- Either 640 or 660 depending on the type of home.
MSHDA also has programs to help homeowners after they buy a home. For example, if you need to make improvements to your home, are delinquent on utilities or mortgage payments, or are facing foreclosure. To potentially get this aid, you will need to take a housing education class.
How do you take a housing education class?
MSHDA’s Housing Counseling agency network partners with HUD-certified Housing Counselors in Michigan. This network is trained to help clients navigate a variety of challenging situations like foreclosure and eviction through accessing recovery resources. To find a housing education agency near you, simply use this handy search tool.
Now that you have more information on how to get help on a down payment in Michigan, your next step should be to speak with an MSHDA housing counselor to see if you qualify for aid. Best of luck to you on your homebuying journey!