MSHDA Loan Qualification Criteria
The Michigan State Housing Development Authority (MSHDA) offers various assistance programs to make homeownership more accessible, particularly for first-time homebuyers. To qualify for an MSHDA loan, applicants must meet specific eligibility criteria.
First-Time Homebuyer Status
MSHDA programs are primarily designed for first-time homebuyers. Applicants cannot have owned a home within the past three years (Mortgage 1, 2023).
Income Limits
MSHDA establishes income limits that vary based on the area, family size, and sales price of the home (Treadstone Mortgage, n.d.). These limits are determined by both income and the sales price of the property in question.
Credit Score
To qualify for an MSHDA loan, applicants typically require a minimum credit score of 640 (Mortgage 1, 2023). For multiple-section manufactured homes, the minimum credit score requirement is 660.
Housing Education
Before securing an MSHDA loan, applicants must complete a housing education class (Treadstone Mortgage, n.d.). This class provides essential knowledge and guidance for homebuyers, empowering them with better decision-making skills.
Down Payment Assistance
MSHDA offers down payment assistance of up to $10,000 for eligible homebuyers (First State Bank, n.d.). This assistance can be utilized for the down payment, closing costs, and other related expenses. The down payment assistance is considered a second mortgage with 0% interest and is repayable when the home is sold or the mortgage is paid off.
Additional Resources
- What You Need to Know About MSHDA First-Time Home Buyer Assistance Programs
- Step-by-Step Guide to MSHDA Down Payment Assistance
- Home Ownership is More Accessible Than Ever
FAQs
Who is eligible for MSHDA assistance?
MSHDA assistance is primarily available to first-time homebuyers, meaning you cannot have owned a home within the past three years.
Are there income limits for MSHDA loans?
Yes, MSHDA establishes income limits that vary depending on the area, family size, and sales price of the home.
What is the minimum credit score requirement for an MSHDA loan?
The minimum credit score requirement for an MSHDA loan is typically 640. For multiple-section manufactured homes, the minimum credit score requirement is 660.
Is it necessary to complete a housing education class to qualify for an MSHDA loan?
Yes, all MSHDA loan applicants must complete a housing education class before securing a loan.
How much down payment assistance can I receive from MSHDA?
MSHDA offers down payment assistance of up to $10,000 for eligible homebuyers.
What can I use the MSHDA down payment assistance for?
The MSHDA down payment assistance can be used to cover the down payment, closing costs, and other related expenses.
How long do I have to repay the MSHDA down payment assistance?
The MSHDA down payment assistance is considered a second mortgage with 0% interest and is repayable when you sell the home or pay off the mortgage.
Are there any additional eligibility requirements for MSHDA loans?
In addition to the criteria mentioned above, MSHDA may have additional eligibility requirements based on the specific loan program and the applicant’s circumstances. It is recommended to contact an MSHDA-approved lender for more information.