Michigan Next Home Down Payment Assistance
Financial Assistance for Homebuyers in Michigan
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Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to help homebuyers purchase a home. It is a second mortgage that must be used in conjunction with MSHDA's MI First Home or MSHDA's MI Next Home first mortgage.
One of the DPA programs offered by MSHDA is the MI Next Home Down Payment Assistance (DPA), and the program is designed specifically for repeat homebuyers. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments; it is only due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full. The maximum DPA is the lesser of $7,500 or 4% of the sales price.
Eligibility Requirements
To qualify for the MI Next Home DPA borrowers must meet the following requirements:
- Applicants must be repeat homebuyers statewide.
- A minimum credit score of 660 is required.
- Manufactured homes are not eligible under the program.
- All adults in the household need not apply; only qualifying borrowers (that are repeat homebuyers) will be underwritten for credit, assets, and income.
- Collections and judgments do not need to be paid off; lenders will follow their Automated Underwriting System findings.
- Borrowers must fall under the set income limits, which vary by family size and property location.
- The sales price of the property cannot exceed $224,500, statewide.
- Borrowers must complete a homebuyers education course.
Down Payment Grants in Michigan
One of the programs that MSHDA offers is the MI First Home Down Payment Assistance (DPA). The maximum DPA under this program is $7,500. This down payment assistance is a zero-interest, non-amortizing loan with no monthly payments.
The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.
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