If you’re thinking about buying a home, you might have heard of an MSHDA mortgage. The Michigan State Housing Development Authority (MSHDA) offers a range of mortgage programs to make homeownership more accessible.
MSHDA aims to ensure that all Michigan residents have access to safe, affordable, and quality housing, promoting stable communities and economic growth throughout the state. MSHDA mortgages encompass various programs to help potential buyers become owners, from down payment assistance to competitive interest rates.
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MSHDA mortgages offer a range of benefits that make homeownership more attainable and affordable for many Michigan residents. Let’s break down some of the top advantages.
One of the biggest hurdles to homeownership is the down payment. Traditional mortgages often require a hefty sum upfront, which can be a deal-breaker for many first-time homebuyers. With MSHDA mortgages, you can secure a home with a down payment as low as 3%. This significantly lowers the entry barrier, making homeownership accessible to those who might otherwise be sidelined by high initial costs. A lower down payment requirement can help you save your hard-earned money for other expenses, such as moving costs, home improvements, and emergency savings.
In addition to lower down payment requirements, MSHDA provides financial assistance to cover initial costs that you can use toward your down payment and closing costs. The MSHDA’s down payment assistance program, the MI 10K DPA Loan, provides up to $10,000 in assistance statewide. The DPA 10K program helps to alleviate the financial burden of upfront costs, reducing the amount of money homebuyers need to save and allowing them to enter the housing market sooner.
Interest rates can make or break a mortgage deal. MSHDA mortgages offer below-market interest rates, which means you’ll end up paying less over the life of your loan compared to conventional mortgages. A lower interest rate can save you thousands of dollars, freeing up your budget for other necessities or investments.
Previously, MSHDA’s down payment assistance programs were limited to specific areas. However, since 2023, MSHDA mortgages are now available statewide. This expansion ensures that everyone in Michigan can take advantage of these programs. You no longer need to live in a designated area to qualify, giving you more options for where to settle down and build your life. Whether you enjoy the vibrant energy of a city or the peacefulness of a rural community, MSHDA mortgages offer the flexibility to choose a location that best fits your lifestyle and needs.
MSHDA offers exclusive benefits, including discounted mortgage insurance. Private mortgage insurance, PMI, protects the lender in case you can’t make your payments, and getting a discount on it means lower monthly costs for you. It’s another way MSHDA makes homeownership more affordable, reducing your overall financial burden.
MSHDA mortgages can be paired with various MI Home Loan first mortgage programs to find the mortgage that best fits your unique circumstances and goals. These include:
You can pay off your loan early without any extra fees. This feature provides flexibility if your financial situation improves, allowing you to save on interest by paying down your principal faster.
If you meet the requirements to qualify for a MSHDA mortgage, applying is the next step. The first thing you need to do is:
Finding an MSHDA-approved lender is the initial step in qualifying for an MSHDA mortgage. Mortgage 1 has been Michigan’s leading MSHDA lender for 11 years, offering exceptional service and support to our clients.
With Mortgage 1, you can trust that you are in capable hands as you move closer to realizing your homeownership dream. Apply below to start your preapproval.