MI Home Loan

A 30-year fixed-rate mortgage offered by the Michigan State Housing Development Authority is called an MI Home Loan. It is available through MSHDA and the MSHDA-approved lenders. This first-time home buyer program in Michigan is offered as a conventional FHA, VA, or USDA loan. It can be used by first-time homebuyers throughout the state and repeat buyers in certain areas. If MI Home Loan borrowers are also eligible for the MI 10K DPA Loan, they can receive the DPA.

Additionally, Area-specific maximums for household income, home prices, and minimum credit scores are required. Statewide, home prices should be at most $2,24,500. The minimum credit score should be equal to or more than 640 for majority types of homes and 660 for multiple-section manufactured homes.

MI 10K DPA loan program

This is a 0 percent interest loan up to $10,000 available to those who qualify for an MI Home Loan and who complete a homebuyer education course. The money can be used for a down payment, closing, and prepaid/escrow payment. The 10K DPA loan has no monthly fees. It is only to be repaid when the home is no longer a primary residence or there is a change of ownership. This first-time home buyer grant in MI could previously be issued only in specific zip codes, but it became available statewide as soon as May 2023.

Mortgage credit certificate (MCC)

Even if your home is expensive, you can still save some money when paying taxes after buying a house through the MCC Mortgage Credit Certificate. In this state, your credit is 20% of annual mortgage interest, up to only $2000 a year. You have to pay a $400 fee for it, and with the lender's commission, it is somewhere between $500-$600, but you may consider such first-time home buyer programs in Michigan worthwhile if you use it every year for the full 30-year period.

Detroit homebuyer assistance

The dynamic city of Detroit has undergone substantial revitalization in recent years. A significant driver of this resurgence has been strategic initiatives aimed at bolstering homeownership within city limits. Among the assortment of Michigan first-time home buyer grants established to aid potential homeowners are:

• Detroit Neighborhood Initiative: The Detroit Neighborhood Initiative offers prospective purchasers who satisfy the requirements of the comprehensive NACA pre-purchase program qualification for an affordable, fixed-rate mortgage devoid of closing expenses or necessity for a down payment.
• Detroit DPA Program: Scheduled to reopen in 2024, Detroit’s DPA Program facilitates qualifying residents with lower incomes within Detroit to procure a residence by providing up to $25,000 as a non-repayable grant toward their down payment.
• Detroit Home Mortgage Program: Some participating lenders, including TCF and Huntington Bank, participate in the Detroit Home Mortgage program. The program can waive certain closing costs and offer modest grants for eligible buyers, spurring additional investment in the state through homeownership.

FHA Loan

Federal Housing Administration-insured loans offer prospective homeowners more accommodating requirements than conventional loans. Applicants can secure financing with only 3.5% down and credit as low as 580.

VA Loan

Active military, veterans, and bereaved partners gain from guarantees by the U.S. Department of Veterans Affairs. Rates tend to be reduced, and deposits are unnecessary. The administration crafts programs appropriately tailored to the sacrifices made.

USDA Loan

Loans assured by the U.S. Department of Agriculture also waive deposit demands. However, the property must be situated in designated non-urban areas and satisfy regional criteria. Country living receives backing from committed citizens.

HomeReady and Home Possible loans

HomeReady and Home Possible were established by government-tied enterprises to smooth first-time entry. Merely 3% down is needed with leniency on earnings. Varied sentence structure offers opportunities for diverse buyers.