Looking for a home in Michigan? Down payment assistance programs can provide much-needed financial support. The MI 10K DPA Loan Program from the Michigan State Housing Development Authority (MSHDA) offers Michigan homebuyers down payment and closing cost assistance.

The loan program is part of MSHDA’s broader efforts to promote affordable housing and homeownership opportunities throughout the state of Michigan. By providing financial assistance, the program aims to stimulate the real estate market and contribute to the economic well-being of Michigan communities.

The MSHDA’s MI 10K DPA Loan Program has recently undergone modifications to further enhance its benefits for current and prospective Michigan homeowners. The program offers numerous advantages to individuals and families seeking homeownership in Michigan.

Key Features Of The MI 10K DPA Loan Program

• $10,000 down payment assistance is now available to all eligible homebuyers and homeowners in Michigan, previously only available in select zip codes throughout the state
• Appraisal gap coverage allowed
• No-asset limit
• Maximum financing is no longer required
• Must be combined with a MSHDA MI Home Loan first mortgage (FHA, RD Guaranteed, or Conventional).
• Minimum 1% borrower contribution.
• 0% interest and no monthly payments.
• The 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.

The MI 10K DPA Loan Program is an excellent option for homebuyers looking to reduce financial stress and invest in eligible neighborhoods. Let’s explore the benefits that come with taking advantage of down payment assistance plans.

Benefits of Down Payment Assistance Programs

Down payment assistance programs, such as the MI 10K DPA Loan, can significantly reduce the financial barriers faced by potential homebuyers. By offering monetary support for upfront expenses, such as down payments and closing costs, these programs enable more people to achieve homeownership while promoting economic growth within local communities.

• Reducing financial stress on first-time buyers: Many first-time homebuyers struggle with saving enough money for a down payment and other associated costs. The MI 10K DPA Loan program helps alleviate this burden, making it easier for individuals to enter the housing market. Learn more about how MSHDA’s down payment assistance programs can help Michigan residents.
• A wider range of individuals and families can participate: Eliminating asset limits makes homeownership more attainable, without the fear of exceeding previous asset thresholds.
• There is no required maximum financing: Unlike the $7,500 MI DPA loan, the additional MI 10K DPA funds may be applied toward the down payment. You can put down as much as you are comfortable with.

How to Apply for the MI 10K DPA Loan Program

If you’re interested in taking advantage of MSHDA’s upgraded offer, the first step is to find a participating lender or mortgage officer who can guide you through each step of applying for and securing an MI 10K DPA loan. They’ll provide essential information about eligibility requirements and ensure that all necessary documentation is submitted correctly.

• Finding a participating lender or mortgage officer: Reach out to your local Michigan Mortgage Loan Officer who specializes in down payment assistance programs like the MI 10K DPA Loan. They will have up-to-date knowledge of program guidelines and can help determine if you qualify. Your loan officer must be a MSHDA-approved lender. 
• Understanding eligibility criteria: Your Mortgage Loan Officer will review your financial situation and explain any specific requirements needed for this particular program. This may include income limits, credit score minimums, property location, etc.

Michigan Down Payment Assistance at Mortgage 1

If you’re interested in learning more about Michigan Down Payment Assistance programs or applying for a loan, contact our team of experts today. Mortgage 1 has been the top MSHDA lender since 2013 and is ready to help. Contact us now to get started on your journey toward homeownership!