In Michigan, there are various Michigan down payment assistance programs which help low and moderate income residents buy homes. These programs are administered by public agencies which operate with federal and state funds. The people who primarily benefit from these programs are the people who are unlikely to afford buying new homes and hence require assistance. To be eligible for these programs applicants are required to meet certain conditions which are stipulated depending on the program one applies.
Some of the popular down payment programs in Michigan include the one provided by the Michigan State Housing Development Authority. This program provide applicants with a maximum of seven thousand and five hundred dollars for down payment, closing cost and home inspection. This amount does not require to be paid in monthly installments like in normal mortgages. Instead, beneficiaries of this program only have to pay if they change ownership of their homes. Some of the conditions in this program include; applicant should have incomes below 80% of Michigan median income, applicants must attend buyer education course and applicants must fund at least one percent of the closing cost. Another popular down payment assistance program in Michigan is the one provided by Jackson Affordable Housing Corporation which provide applicants with a minimum of one thousand dollars and a maximum of two thousand dollars to purchase homes in the city. Graduate Purchase Assistance is also a popular program and it helps applicants who have graduated from college within a period less than three years and have earned associate, bachelor’s, master’s or doctorate degrees.
Besides meeting all the requirements to qualify for the various down payment assistance programs in Michigan, it is also important to apply correctly. One of the most important aspects of filling these applications is that one needs to provide truthful information. This is because the authorities that approve the applications do their own investigation and they deny applications if they find untruthful information. It is also paramount to fill all the required information in the right way without omiting anything since this can also lead to the application being denied. Therefore, people wishing to buy homes in Michigan can readily benefit from the various Michigan down payment assistance programs provided they meet the necessary requirements and they apply in the right way.
Below is a list of Michigan Down Payment Assistance Programs:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Michigan Down Payment Assistance Programs
Down Payment Assistance Program This Michigan down payment program offers a second mortgage up to $7,500 that is used in combination with the MI First Home Program (but only for FHA or RD first mortgages). Loans are zero interest and non amortizing, and require no monthly payment. Participants may only need to contribute a minimum of 1 percent of the sales price. Program participants must pay back the loan upon sale or transfer of the property. The loan also is due if the first mortgage is refinanced or paid off.
MI First Home Program This Michigan down payment program is for first time home buyers can get 30 year, fixed rate mortgages that are FHA, VA, RD or conventional. To qualify, homes must be both single family and the Michigan borrower’s primary residence. Qualified Michigan borrowers can also receive Michigan down payment assistance. Income and purchase price limits apply.
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Michigan Housing Agencies
Michigan housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.