Michigan First Time Home Buyers

MICHIGAN

Michigan Down Payment Assistance

The MSHDA has a DPA program that was made to help with closing and down payment costs. Instead of getting a grant, Its basically a second mortgage with 0% interest, that gets paid off when you sell or pay the mortgage off in full. Generally you can get $7,500, in about 200 michigan zip codes it can be up to $10,000

Requirements;

must borrow MI home loan or home loan flex

less than $20,000 in cash assets

must have 1% of purchase price available

must complete home buyer education course

Mortgage Credit Certificate

The MCC program provides housing assistance by issuing a federal tax credit to first-time homebuyers statewide.

Description;

tax credit allowable every year for the life of the loan

household income limits can vary depending on family size and property location.

max. sale price $224,500

Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability. A tax credit is a 1 for 1 reduction in tax liability.

Standard Conventional

- down payment as low as 3% with HomePossible and HomeReady

- loan term from 10-30 years

- fixed and adjustable rates available

FHA

- 3.5% down required

- 10-30 year loan terms

- min 580 credit score accepted, co applicants allowed

- seller can pay up to 6% of sale price towards closing costs

- FHA 203 (k) available for rehab homes

VA

- no down payment required or mortgage insurance for qualifying Veterans

- min 580 credit score accepted

- seller can pay up to 4% in closing costs

- limited closing costs, no early pay off penalty, funding fee waived for disabled veterans

USDA

- no down payment required, closing costs can be financed into loan

- 30 year fixed mortgage with no max loan amount

- 6% seller concessions allowed

-single family homes, townhomes, and manufactured homes eligible

- low credit scores accepted (must Meet property and income requirements)

To learn more about the different first time home buyer programs, and more specific to your area check out your states gov. website (ex; Michigan.gov)