Don't Let the Down Payment Keep You from Your Dream Home

Today's guest blog post comes from the Michigan State Housing Development Authority (MSHDA).

Did you know that many prospective first home buyers hesitate or don’t purchase at all for fear they can’t afford it?  According to our recent survey, 55 percent of future first-time homebuyers in Michigan have not considered purchasing a home because they don’t have enough for a down payment.

We find that many buyers are confident in their ability to make monthly mortgage payments, but the prospect of a large down payment is intimidating. Combine that with other potential out of pocket fees like closing costs, moving costs and desired home updates and this concern is understandable. While paying rent may seem like the safer option, it could push homebuying off even further by making it harder to save for a down payment.

At MSHDA, we believe the down payment shouldn’t keep you down. Both first-time and repeat Michigan homebuyers may be eligible for a Michigan Down Payment up to $7,500 when they select our MI Home Loan or MI Home Loan Flex programs. These 30-year, fixed-rate mortgage programs are available statewide for individuals and families at multiple income levels. Many people are surprised to learn that with this program, they can purchase a home in their desired neighborhood for up to $224,500. And the Michigan Down Payment allows them to keep their savings for a rainy day.

Our support doesn’t stop at the down payment and mortgages. To help empower our clients, MSHDA provides homebuying experts and classes to help you become more knowledgeable and confident about the entire process. Our network of housing educators provide various services to assist potential homebuyers and current homeowners. All of our clients entering into a MSDHA loan take homebuyer education classes. We can also connect you with resources to financial capability education, pre-purchase counseling, foreclosure prevention counseling and FSS/Key to Own.

MSHDA is dedicated to helping create smart, confident first-time homebuyers in Michigan. In 2016, we helped more than 1,600 families at multiple income levels and across Michigan communities become homeowners for the first time.

If you are interested in learning more, please visit MichDownPayment.com to gather more information on our various programs and complete our Eligibility Tool to help determine the solutions right for you.

Mary Townley

Director of Homeownership at Michigan State Housing Development Authority

*Note: These programs are different than Down Payment Assistance programs offered to Habitat for Humanity Homeowners.