Michigan program offers $25K to assist first-generation homebuyers
The Michigan State Housing Development Authority (MSHDA) announced Tuesday it has launched a program to support first-generation homebuyers.
The First-Generation Down Payment Assistance Program offers a $25,000 loan to help with a down payment, closing costs and prepaid expenses, according to a news release. The program is available in all counties.
Anyone interested must meet the following criteria:
- Must meet the definition of first-generation homebuyer, have no prior history of homeownership in the last three years and must use the property as their primary residence.
- Must fall within the household income limits set by MSHDA.
- A minimum credit score of 640 is required.
- The target property sale price cannot be more than $224,500.
- No parent of the borrower(s) has owned a home in the last three years.
- The First-Generation DPA must be combined with an MI Home Loan (conventional, FHA, or USDA).
- Must complete a face-to-face homebuyer education class offered by a HUD-approved housing counseling agency.
- Must meet all other program eligibility requirements.
"Homeownership is an important pathway to economic vitality and mobility for our state and its residents, but too many first-time buyers face financial barriers that put it out of reach," said Amy Hovey, chief executive officer and executive director of MSHDA. "With rents soaring, this program offers families a foot in the door and much-needed stability by helping them secure a home with a fixed monthly cost. This financial boost will allow first-generation homebuyers to invest in their futures, strengthen their communities, and build generational wealth."
Visit the state's website for more information on the program.
