How To Make Your First Home Affordable

As a first-time homebuyer in Michigan, several programs can assist you in achieving homeownership:

**MI Home Loan Program**

Offered by the Michigan State Housing Development Authority (MSHDA), this program provides 30-year fixed-rate mortgages, including conventional, FHA, VA, and USDA loans, often at below-market interest rates. It's available to first-time buyers statewide and repeat buyers in targeted areas. Eligibility requirements include a minimum credit score of 640, adherence to household income limits, and a maximum sales price of $224,500.

Investing in your first home is a big step, but is easier than you think.

**Down Payment Assistance (DPA) Programs**

MSHDA offers down payment assistance loans that can be combined with the MI Home Loan:

https://www.michigan.gov/mshda/pathway-to-housing/mi-home-loan

- **MI 10K DPA Loan**: Provides up to $10,000 in assistance for eligible buyers purchasing homes in certain ZIP codes.

- **MI DPA Loan**: Offers up to $7,500 in assistance statewide.

These loans are typically structured as second mortgages with 0% interest, deferred payments, and may be forgivable under certain conditions.

**Mortgage Credit Certificate (MCC)**

This federal tax credit reduces your federal income taxes by up to 20% of the annual mortgage interest you paid, providing ongoing savings for first-time homebuyers.

**Federal Programs**

In addition to state-specific options, federal programs are available:

- **FHA Loans**: Require a minimum credit score of 580 with a 3.5% down payment, making them accessible to many first-time buyers.

- **USDA Loans**: Offer 100% financing for homes in eligible rural areas, with no down payment required.

- **VA Loans**: Available to veterans and active-duty military members, these loans often require no down payment or mortgage insurance.

Eligibility for these programs varies based on factors such as income, credit score, and property location. Consulting with approved lenders and housing counselors can help you navigate these options and determine the best fit for your homeownership journey.

If you would like a reputable loan officer specializing in these programs to speak with contact us here