Michigan - Government Backed Loans

MSHDA offers Mortgage Loan Programs to assist low-to-moderate income families to purchase a home. To be eligible, applicants must qualify under federal and state income and home purchase price limits. Additional assistance for down payment and closing costs assistance is also available for those who qualify.

Purchase Programs

Conventional 95% to 97% LTV

The Conventional 95% to 97% LTV program offers a 30-year mortgage loan for first-time homebuyers who fall within the designated income limits. Loan options include Step Rates, Buydown Options, down payment assistance and contributions of 3%, 6%, or 9% of the home's sales price or appraised value, whichever is less.

Continue reading about Conventional 95% to 97% LTV.

FHA

FHA is a Federally funded mortgage program for low- to moderate-income, first-time homebuyers. The FHA loan is a 30-year fixed rate loan at lower than market interest rates. Loan options with FHA include Step Rates, Buydown Options, down payment assistance and contributions of up to 6% of the home's sales price or appraised value, whichever is less.

Continue reading about the FHA.

VA

The VA mortgage loan is designed to assist military veterans and active duty servicemen and women in purchasing their first home. The VA loan is offered in the form of a 30-year term, with a Buydown option available.

Continue reading about VA Mortgages.

Rural Development

The Rural Development program provides low- to moderate-income, first-time homebuyers looking to purchase a home in one of the state's designated rural areas with a 30-year fixed rate mortgage loan. Downpayment assistance is available with the Rural Development loan, and all adult members of the household must apply for the loan jointly.

Continue reading about the Rural Development Program.

Graduate Purchase Assistance

The Graduate Purchase Assistance program assists college graduates who have completed their degree within the last 3 years. Homebuyers must purchase a home located within the 8 designated "Cities of Promise," and their families must fall within the income limits. Homebuyer education is required of the homebuyer, and job loss protection insurance is included in the loan in the case of involuntary unemployment.

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Employer Assisted Housing

Employer Assisted Housing is a program designed to work in partnership with participating employers to offer homeownership opportunities to low- to moderate-income first-time homebuyers. Employers contribute funds to eligible employees to be used as downpayment assistance toward purchasing a home, and the Michigan State Housing Development Authority matches the funds dollar-for-dollar. The contributed funds are to be within the range of $2, 500 to $5, 000, and the loan is offered in the form of a 30-year, fixed-rate mortgage.

Continue reading about Employer Assisted Housing.