What Steps Do You Need to Take to Own a Home
What Steps Do You Need to Take To Own A Home?
April 24, 2024
Show all

MI Home Loan and Home Loan Flex | MSHDA

MI Home Loan and Home Loan Flex

Homeownership is a foundational aspect of achieving financial stability for many individuals and families. In Michigan, this goal is supported by the Michigan State Housing Development Authority (MSHDA), which aims to provide affordable housing options and necessary financial support to Michigan residents.

As a state-established entity, MSHDA facilitates various programs to enhance community development, manage public housing, and support the state’s housing economy. These initiatives are crucial for boosting homeownership rates, improving living conditions, and fostering sustainable community growth.

Enhancing Homeownership Accessibility

MI Home Loan programs are a cornerstone of MSHDA’s strategy to promote homeownership. These loans make purchasing a home more accessible and affordable through various financial aids and buyer incentives, specifically targeting first-time and repeat homebuyers in certain areas.

A significant advantage of the MSHDA is the down payment assistance (DPA) program. MSHDA offers homebuyers an opportunity to utilize up to $10,000 toward the down payment, closing costs, prepaids/escrows, etc., but it must be paired with an MI Home Loan. So, if you want the $10,000, you also will need to qualify for a MI Home Loan. 

These programs facilitate affordable homeownership through:

  • Affordable Loan Options: MSHDA loans can be used with various MI Home Loan first mortgage programs that fit their personal financial profile, including FHA, conventional, VA, and USDA.  
  • Lower Interest Rates: MSHDA offers interest rates that are often lower than the current market rates, making monthly payments more affordable over the life of the loan.
  • Financial Aid for Down Payments: Eligible homebuyers can receive down payment assistance, significantly reducing the amount they need to save for a down payment. This can be a game-changer for many first-time buyers with solid income but limited savings.
Interested in a MI Home Loan?
Give us a call at 1-866-532-0550 to learn more or get preapproved today with our easy-to-use digital preapproval app. With Pro SNAP, getting approved is secure, convenient, and takes as little as 15 minutes.

MI Home Loan: Empowering Homeowners

The MI Home Loan is tailored to support first-time homebuyers, and repeat buyers in targeted areas. The benefits of the MI Home Loan include competitive interest rates, lower than those typically found on the market, and the possibility of qualifying for down payment assistance. The program also helps buyers secure a mortgage with a lower credit score than many conventional loans require.

Eligibility and Requirements

  • Prospective borrowers must use a participating lender approved by MSHDA. These lenders are familiar with the MI Home Loan specifics and can effectively guide applicants through the application process.
  • Applicants are required to take a homebuyer education class. This educational component is vital as it prepares new homeowners for a home’s financial responsibilities and management, ensuring they are well-informed and ready for the journey ahead.
  • The program is available to first-time homebuyers across Michigan—defined as individuals who have not owned a home in the past three years—and to repeat buyers, but only in designated targeted areas. 
  • Household income limits apply and can vary depending on family size and property location.
  • Statewide sales price limit of $224,500
  • A minimum credit score of 640 is required.

MI Home Loan Flex: Adaptability for Modern Buyers

Due to changes and enhancements to their programs, MSHDA has temporarily suspended the Flex Loan Program until further notice.

How the MI Home Loan Flex Program Differs:

  • Unlike the standard MI Home Loan, which primarily targets first-time homebuyers, the MI Home Loan Flex is available to both first-time and repeat homeowners. This inclusion ensures that more people can benefit from the program, regardless of their previous homeownership history.
  • One of the unique aspects of the MI Home Loan Flex is the ability to exclude members from the mortgage application. In the standard MI Home Loan, all household members’ incomes and debts are considered in the application. However, the Flex program allows applicants to include only those household members who are qualified borrowers. 
  • With the MI Home Loan Flex, underwriting is focused solely on the qualified borrowers’ assets, credit, and income. It can also simplify the borrowing process, making it easier for individual borrowers to meet the qualification criteria.

How to Apply for a MI Home Loan

To qualify for a MI Home Loan, the first step is to qualify for a mortgage with a MSHDA-approved lender. Mortgage 1 has been the top MSHDA lender in Michigan for 11 years, providing excellent service and support to its customers. 

To start your journey toward homeownership, you can easily apply for a mortgage pre-approval from Mortgage 1 by filling out an application form online. This process is quick, easy, and free. Once you have received your mortgage pre-approval, you will have a better idea of what programs you qualify for and how much you can afford to spend on a home. With Mortgage 1, you can rest assured that you are in good hands and on your way to achieving your dream of homeownership. Apply below. 

Get Started Today!