In an effort to expand the State of Michigan’s mission to increase accessibility of homeownership, the Michigan State Housing Development Authority (MSHDA) has rolled out an exciting new down payment assistance (DPA) program. The MI 10K DPA bolsters the state’s existing down payment assistance (DPA) programs while targeting 236 select zip codes.
As with MSDHA’s other DPA offerings, this program is offered as a 2nd mortgage with no interest or payments for the life of the loan. The MI 10K DPA loan must be paid in full upon sale or transfer of the property. As with MSHDA’s other DPA loan programs, the MI 10K DPA is a 0% non-amortizing loan with no monthly payments. Meaning no interest is charged or accrues and no monthly payment is ever due for this DPA loan.
So why did MSHDA decide to roll this program out? Well, MSHDA took a look at statistical data and created a list of area which identified opportunities available for employment, income, housing stability, value, education, and other related factors leading to a broad list of areas with greater access to quality, affordable housing.
MI 10K DPA Requirements
MSHDA, in keeping with its current DPA guidelines, still requires the home buyer complete a homebuyer education class, not have more than $20,000 in liquid assets, not have a sales price more than $224,500 and not exceed certain income limitations (based on county and household size). For the MI 10K DPA, you must also be a first-time homebuyer, meaning you have NOT owned a home in the past 3 years, have a debt income ratio of not more than 45% and a middle credit score of at least 640.
For more information on this fantastic new DPA, please visit https://mshdadpa.com/10k-dpa/.