MSHDA offers a down payment assistance loan program called MI 10K DPA Loan, which offers $10,000 in assistance to buyers to use towards the required down payment, closing costs and prepaids/escrows. The program is available in 236 Michigan zip codes.
According to MSHDA, “This program was created to offer assistance to purchasers within specific geographic areas where the opportunity to purchase a home is high, but the rate of homeownership needs improvement. Homebuyers looking to purchase a home within one of these areas will benefit from additional support to help them achieve homeownership.”
The MI 10K DPA Loan program will provide:
- $10,000 to use towards the required down payment, closing costs and prepaids/escrows; any additional down payment can be used to buy down the first lien.
- Maximum financing is not required.
- Must be combined with a MSHDA MI Home Loan first mortgage (FHA, RD Guaranteed, or Conventional).
- Minimum 1% borrower contribution.
- Cash assets are restricted to $20,000.
- 0% interest and no monthly payments.
- Loan is due when the home is sold, refinanced, the first mortgage is paid in full, homeownership interest is transferred, or the home ceases to be the primary residence.
- Available in 236 Michigan zip codes.
For more information about the MI 10K DPA Loan program, reach out to your Mortgage 1 Loan Officer.