Yes. it is true. MSHDA announced this week they are offering Michigan home buyers down payment assistance equal to 4% of their purchase price, up to $7,500, to use for their down payment, closing costs, and prepaid expenses on FHA, Rural Development and VA loans used to purchase a personal residence with a purchase price of $224,500 or less. The above assistance is actually an interest free loan with no monthly payments that becomes due when the owner either sells their home for a profit or refinances.
Previous offerings where only for first time buyers. This offering is also available to buyers who have just sold a home.
Their are income limits: It is available households of two or less with an annual income of $58,900 and to households of three or more with incomes of $68,500 or less. Some targeted and non-targeted areas have higher income limits. It is actually a non-interest bearing loan with no monthly payments that does not become due until the property is sold or refinanced.
Warning: Michigans listing inventory is low so act fast before they are all gone. This may temporarily drive up home prices and sales.
Check out MISDA's MI Next Home- Frequenty Asked Questions for more Details and qualified lenders. Stay tuned for further developments.
Below is s quote from Scott Woosley in Mondays M-Live article announcing the program“Our state’s economy is making a strong comeback and we’re finding more Michigan residents are ready to upgrade to a new home,” MSHDA Executive Director Scott Woosley said. “For many, a sizable down payment has been a barrier, so MSHDA has come up with the MI Next Home program to help make moving possible.”
Please let me know if you would like help taking advantage of this program.
Formore information on how you can take advantage of this program contact Brian Clinger with Coldwell Banker Schmidt. He has been helping West Michigan home buyers for 23 years. (616) 581-4819.