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Michigan State Housing Development Authority (MSHDA)

MSHDA has been making dreams come true for Michigan homebuyers for over three decades. To become a MSHDA lender click on the MSHDA link and go to the lender section of their website. Join MSHDA today in:

Delivering the dream of homeownership for Michigan’s low wealth families

• Below market interest rates
• Homeownership and financial management counseling
• Down payment assistance
• Various loan products available.

Homeownership Program Highlights

• Loan term of 30 years with step options available
• Below market interest rates
• Down payment assistance for qualified buyers
  Borrower Guidelines
• Combined household income limits ($60,500 to $72,250 depending on family size and location)
• Sales price limits ($188,400 to $216,750 depending on location)
• Generally acceptable credit and ability to repay the loan
• Occupy the home as your principal residence
• First-time homebuyer (no homeownership in the previous three years). Many area of state are exempt for this requirement.

Eligible Properties

• New or existing single family homes
• New or existing multiple-section manufactured (mobile) home built after June 14, 1976. Homes must have on foundations permanently affixed to real estate.
• Condominiums

Homeownership Loan Products

ARM Assist Refinance

• Helps individuals who currently have an ARM with an interest rate that has increased and/or is projected to increase, making the payments unaffordable
• 30 year fixed rate loan
• 100% LTV and can include closing costs and prepaid expenses

Rescue Refinance Program

• Assists individuals who have had late payments on their mortgage (no more than three 30-day late payments within the last 12 months and be current at the time of application)
• 30 year fixed rate loan
• 100% LTV and can include closing costs and prepaid expenses

MSHDA offers a variety of loan products for low to moderate income homebuyers. All of the following products are 30 fixed-rate mortgages, allow the use of gift funds and may be formally assumed (subject to approval).

Conventional 103% LTV

• May include buyer-pre-paid closing costs and prepaid expenses providing loan does not exceed 103% of the sales price or appraised value.
• Minimum FICO of 680
• Non-traditional credit is not allowed
• Homebuyer Education is required

Conventional 100% LTV

• Interested party contributions allowed up to 3% of the sales price or appraised value.
• Minimum FICO score of 620
• Non-traditional credit is not allowed
• Homebuyer education is required.

Conventional 95% to 97% LTV

• Step and/or Buydown options available to eligible borrowers on certain loan types
• Down Payment Assistance available to qualified borrowers using 97% LTV
• Seller contributions allowed for closing costs and certain prepaid settlement costs at either 3%, 6% or 9% (depending on LTV) of the lesser of the sales price or appraised value
• Non-traditional credit is allowed
• Homebuyer education required if LTV is 97% or higher or MSHDA Down Payment Assistance is used.

Other programs available: FHA, VA and Rural Development.

Interest rates for MSHDA Homeownership Loan Programs (see website for more details)

Term	Points	Interest Rate	APR*
30 year WITHOUT DPA	0	5.625%	5.757%
30 years WITH DPA	o	6.000%	6.137%

**MSHDA/FHA and MSHDA Conventional 97% Loans ONLY
See website for updated rates

Down Payment Assistance

For many low to moderate-income homebuyers, saving money for a down payment can be a challenge. Let the MSHDA help you ‘close the deal’ with their Down Payment Assistance program.

Program Highlights

• Zero-interest, non-amortizing loan with no monthly payments
• Maximum assistance is $7,500
• Available with MSHDA’s FHA, Rural Development or 97% Conventional first mortgage
• Finds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection preformed by a licensed home inspector.
• Loan due upon sale or transfer of property or if the first mortgage is refinanced or paid in full.

Borrower Guidelines

• Available for low to moderate-income homebuyers. Household income limits are approximately 80% of the area median income and vary depending on the location and family size.
• Sales price limits ($188,400 to $216,750 depending on locations)
• Borrower must complete a homebuyer education class
• Minimum borrower contribution of one percent of the sales price.

Graduate Purchase Assistance

MSHDA is pleased to announce an exciting new loan program for college graduates. If you have earned an associate’s, bachelor’s, masters or doctoral degree within the last three years you may be eligible to purchase a home at greatly reduced rates!

Program Highlights

• Reduced interest rate conventional loan program (approximately two percentage points below market rate) for college graduates receiving a degree within three years prior to loan application
• Available for Conventional 95%, 97%, 100% and 103% loans.
• Zero interest Down Payment Assistance available to qualified borrowers.

Borrower Guidelines

• Income limit up to $72,250
• Sales price up to $216,750
• Generally acceptable credit and ability to repay the loan
• Occupy the home as your principal residence.

Eligible Properties
To qualify, properties must be located within the city limits of the eight “Cities of Promise”

• Benton Harbor
• Hamtramck
• Pontiac
• Detroit
• Highland Park
• Saginaw
• Flint
• Muskegon Heights

To learn more about these and other exciting homeownership programs link to the MSHDA web site at: http://www.michigan.gov/mshda

MSHDA Audio Conference

Michigan State Housing Development Authority Property Improvement Program
Designed to make a good home better!

With a low interest rate Property Improvement Program loan, it’s up to you to decide what kind of repairs are necessary to maintain or improve your home or rental property!

Depending on local building codes, your members may be able to do some of the work yourself financing only the cost of materials (but not your own labor). If a contractor is required or preferred, the individual or company must be state licensed.

Almost any time of permanent general improvement can be made. For Example:

• Install insulations
• Replace the heating system
• Paint the building
• Add new siding
• Replace the roof
• Install new windows
• Remodel the kitchen or bathroom
• Upgrade electrical wiring
• Even add new rooms

MSHDA, homeowners and landlords can work together to improve housing throughout the State of Michigan!

Loans May Be Available If:

• The 1 to 24 unity property is owned in your member’s name
• They are a reasonable credit risk, demonstrate an ability to repay the loan, and meet MSHDA’s underwriting criteria.

Depending on your member’s financial ability and the amount borrowed, they may take up to 30 years to repay the loan.

Lack of equity is not a factor

For Owner-Occupied Properties Only:

• Income cannot exceed $62,100 and up to $72,250 in certain cities.
• Loans above $7499 are secured by a mortgage on the property
• Proof of ownership, such as a quit claim deed, must be traced to a recorded warranty deed
• There are equity requirements for loans over $25,000
• There can be a 30 year term for loans over $25,000
• Loan interest rates are based on household income as follows:
  

  Gross Household Income:
  0 - $19,999	4%
  $20,000 - $39,999	6%
  $40,.000 - $62,1000.72,250	8%

For Nonowner-Occupied Rental Properties Only

• Interest Rate = 8%
• There are no upper income limits for borrowers, but the gross rent on each unit, including the average for heat, water and electricity cannot exceed MSHDA’s rental limits for th community during the first year of the loan term
• All loans regardless of the loan amount are secured by a mortgage on the property
• Title insurance is required and is an out or pocket expense
• There can be a 30 year term for loans over $60,000

To sign up to be a Property Improvement Program Lender click on the MSHDA web link and go the Lenders section of the site.

http://www.michigan.gov/mshda