Special M.S.D.A Financing

Michigan State Housing Development Authority

Welcome to MSHDA! The Michigan State Housing Development Authority, established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues.  Proceeds of the bonds and notes are loaned at below-market interest rates to developers of rental housing, and also fund home mortgages and home improvement loans.  MSHDA also administers various federal housing programs. MSHDA offers a variety of loan products for low to moderate income homebuyers. All of the following products are 30-year, fixed-rate mortgages, allow the use of gift funds, and may be formally assumed (subject to approval). Conventional 103% LTV Conventional 100% LTV Conventional 95% to 97% LTV FHA VA Rural Development   CONVENTIONAL 103% LTV This is a 30-year fixed rate conventional loan available to low-to-moderate income borrowers who meet the MSHDA sales price and income limit eligibility guidelines. The mortgage amount may include buyer paid closing costs and prepaid expenses providing the loan to value does not exceed 103% of the lesser of sales price or appraised value. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. May include buyer-paid closing costs and prepaid expenses. providing loan amount does not exceed 103% of the lesser of the sales price or appraised value. Minimum credit score of 680. Non-traditional credit is not allowed. Homebuyer Education from an approved Counseling Agency is required. If you are a participating MSHDA lender that would like to learn more about this MSHDA loan product, please visit the Product Specs. for the Conventional 103%.   CONVENTIONAL 100% LTV This is a 30-year fixed rate insured conventional loan available to low-to-moderate income borrowers who meet the MSHDA sales price and income limit eligibility guidelines and who have a minimum credit score of 620. The mortgage amount may not exceed the lesser of sales price or appraised value. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. Interested party contributions allowed up to 3% of the lesser of the sales price or appraised value. Minimum credit score of 620. Non-traditional credit is not allowed. Homebuyer Education from an approved Counseling Agency is required. If you are a participating MSHDA lender that would like to learn more about this MSHDA loan product, please visit the Product Specs. for the Conventional 100%.   CONVENTIONAL 95% TO 97% LTV This is a 30-year fixed rate conventional loan available to low-to-moderate income borrowers who meet the MSHDA sales price and income limit eligibility guidelines. Many loan products are available and are outlined below. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. Step Rates and/or Buydown options are available to eligible borrowers on certain loan types. Down Payment Assistance available to qualified borrowers using 97% LTV. Interested party contributions allowed for closing costs and certain prepaid settlement costs at either 3%, 6%, or 9% (depending on LTV) of the lesser of the sales price or appraised value. Non-traditional credit allowed. Homebuyer education from an approved Counseling Agency is required if the LTV is 97% or higher, or if MSHDA down Payment Assistance is used. If you are a participating MSHDA lender that would like to learn more about this MSHDA loan product, please visit the Product Specs. for the Conventional 95-97%.   FHA This is a 30-year fixed rate FHA loan available to low-to-moderate income borrowers who meet the MSHDA sales price and income limit eligibility guidelines. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. Step and/or Buydown options available. Down Payment Assistance is available for eligible borrowers. Interested party contributions allowed up to 6% of the lesser of the sales price or appraised value. Non-traditional credit allowed. Homebuyer education from an approved Counseling Agency is required if Down Payment Assistance is used. If you are a participating MSHDA lender that would like to learn more about this MSHDA loan product, please visit the Product Specs. for the FHA.   VA This is a 30-year fixed rate VA loan available to low-to-moderate income borrowers who meet the MSHDA sales price and income limit eligibility guidelines. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. Buydown option available. Non-traditional credit is allowed. If you are a participating MSHDA lender that would like to learn more about this MSHDA loan product, please visit the Product Specs. for the VA.   RURAL DEVELOPMENT This is a 30-year fixed rate Rural Development Guaranteed or Direct loan available to low-to-moderate income borrowers who meet the MSHDA sales price, income limit and first time homebuyer eligibility guidelines. The maximum mortgage amount can be the maximum amount guaranteed by Rural Development and include closing costs, prepaid/escrow items, and the RD guarantee fee. The maximum mortgage amount cannot include repairs and/or improvements to the property. If the borrower has had ownership interest in a primary residence in the last three (3) years, they are not eligible for the program unless they are purchasing in a targeted area (where there are no prior home ownership restrictions). All adult members of the household must apply jointly for the loan. Non-occupant co-borrowers and co-signers are not permitted. A down payment assistance feature is also available with the Rural Development Guaranteed loan program. Down payment assistance funds may be used to pay closing costs, prepaids/escrows and RD Guarantee Fee less the 1% cash investment from the borrower. The down payment assistance funds may not be used to buy down the principal amount of the mortgage to qualify the borrower. Maximum mortgage amount can be maximum guaranteed by RD including closing costs, prepaid/escrow items and the RD guarantee fee. Down Payment Assistance available for eligible borrowers. Interested party contributions allowed subject to RD approval. Non-traditional credit is allowed. College Graduate Program The Michigan State Housing Development Authority (MSHDA) is pleased to announce an exciting new loan program for college graduates. If you have earned an associate's , bachelor's, master's, or doctoral degree within the last three years, you may be eligible to purchase a home at greatly reduced rates!   PROGRAM HIGHLIGHTS Reduced interest rate conventional loan program (approximately two percent below market rate) for college graduates receiving a degree within three years prior to loan application Available for Conventional 95%, 97%, 100%, and 103% loans Zero interest Down Payment Assistance available to qualifed borrowers BORROWER GUIDELINES Families must meet income limits to apply Properties must meet sales price limits to be eligible for financing Generally acceptable credit and ability to repay the loan Occupy the home as your principal residence ELIGIBLE PROPERTY LOCATIONS To qualify, properties must be located within the city limits of the eight "Cities of Promise." Benton Harbor Hamtramck Pontiac Detroit Highland Park Saginaw Flint Muskegon Heights ELIGIBLE PROPERTIES New single family homes or existing single-family homes or condominiums. New condominiums must be approved by FNMA (Fannie Mae), FHLMC (Freddie Mac), MSHDA or an insurer (FHA, VA, RD). New and existing manufactured homes are eligible ONLY if maximum Loan To Value Ratio does not exceed 95%. Co-ops are not eligible for financing by MSHDA. HOMEBUYER EDUCATION Borrowers are required to receive homebuyer education counseling for any loan that has an LTV of 97% or greater. The homeownership counselor must be a MSHDA LINKS to Homeownership Certified Counselor. MSHDA's approved housing counselors are located throughout the State of Michigan. Visit our counselor locator to find a counseling agency near you. MORTGAGE INSURANCE MSHDA offers special reduced rate mortgage insurance premiums by partnering with MGIC and Genworth. Job loss protection coverage is available at no additional cost to borrowers. The reduced mortgage insurance premiums and job loss protection are only available on loans funded by the Michigan State Housing Development Authority that meet MGIC and Genworth eligibility criteria, along with meeting the guidelines for MSHDA loans. FEDERAL RECAPTURE TAX If property is sold within nine (9) years from the date of loan closing, the borrower may owe a recapture tax.  This tax is based on the household income and family size during the year of resale, and on the length of time the borrower occupied the property. Please view MSHDA's Reality of Recapture Brochure to learn more about the possibility of Recapture Tax.      INTEREST RATES FOR MSHDA HOMEOWNERSHIP LOAN PROGRAMS Effective for all loan reservations received on or after Monday December 3rd, 2007. MSHDA interest rates can change frequently. Please check back here for the most current interest rates. FIXED RATE LOAN (Interest Rate Remains the Same For the Life of the Loan) Term Points Interest Rate APR* 30 years WITHOUT DPA 0 5.250% 5.378% 30 years WITH DPA** 0 5.625% 5.757% **MSHDA/FHA and MSHDA/Conventional 97% Loans ONLY     STEP RATE LOAN (Interest Rate Increases After First 3 Years) Term Points Interest Rate APR* 1st 36 mos.of Loan Beginning with 37th month 30 yrs 0 4.750% 5.750% 4.872% MSHDA/FHA and MSHDA/Conventional 95% Loans ONLY     EMPLOYER ASSISTED HOUSING DOWN PAYMENT ASSISTANCE (EAH-DPA) Term Points Interest Rate APR* 30 years 0 5.500% 5.631% MSHDA/Conventional 97% Loans ONLY   ACQUISITION/DEVELOPMENT/RESALE DOWN PAYMENT ASSISTANCE (ADR-DPA) Term Points Interest Rate APR* 30 years 0 5.250% 5.378% MSHDA/FHA, MSHDA/Conventional or MSHDA/RD Guaranteed Loans ONLY   GRADUATE PURCHASE ASSISTANCE PROGRAM (GPA) Term Points Interest Rate APR* 30 years Without DPA 0 4.000% 4.115% 30 years With DPA 0 4.375% 4.493% MSHDA/Conventional Loans ONLY *The annual percentage rate (APR) quoted above represents a typical $99,200 FHA-insured, fixed rate loan on a $100,000 home with a down payment of $2,250 and financed Upfront Mortgage Insurance Premium (UFMIP). This APR is based on a 1% origination fee, 15 days interest adjustment and $220 for loan closing fee. Please note that the actual APR may vary depending upon the Mortgage Loan Fees the participating lender charges the borrower. NO RESTRICTION ON PRIOR HOMEOWNERSHIP ENTIRE COUNTY Alcona Chippewa Ionia Marquette Presque Isle Alger Clare Iosco Mason Roscommon Allegan Crawford Iron Mecosta St. Clair Alpena Delta Isabella Menominee St. Joseph Antrim Dickinson Kalamazoo Missaukee Sanilac Arenac Emmet Kalkaska Montcalm Schoolcraft Baraga Gladwin Keweenaw Montmorency Tuscola Barry Gogebic Lake Newaygo Van Buren Benzie Grand Traverse Lapeer Oceana Washtenaw Berrien Gratiot Leelanau Ogemaw Wexford Branch Hillsdale Lenawee Ontonagon   Cass Houghton Luce Osceola   Charlevoix Huron Mackinac Oscoda   Cheboygan Ingham Manistee Otsego   NO RESTRICTION ON PRIOR HOMEOWNERSHIP CITIES AND TOWNSHIPS Bay County Kent County Oakland County Bay City Grand Rapids Pontiac Gibson Twp. Kent City Royal Oak Twp. Mt. Forest Twp. Spencer Twp.   Pinconning Twp.   Ottawa County   Livingston County Holland Calhoun County Howell Chester Twp. Albion Cohoctah Twp.   Battle Creek Conway Twp. Saginaw County Burlington Iosco Twp. Merrill Lee Twp.   Saginaw   Macomb County Brady Twp. Clinton County Mt. Clemens Brant Twp. Maple Rapids   Chapin Twp. Lebanon Twp. Midland County Marion Twp. Ovid Twp. Coleman     Geneva Twp. Shiawassee County Eaton County Greensdale Twp. Laingsburg Charlotte Jasper Twp. Owosso Olivet Lee Twp. Fairfield Twp. Vermontville Mills Twp. Hazelton Twp. Brookfield Twp. Mt. Haley Twp. Middlebury Twp. Roxand Twp.       Monroe County Wayne County Genesee County Luna Pier Detroit Flint   Ecorse   Muskegon County Hamtramck Jackson County Muskegon Highland Park Jackson Muskegon Hts. River Rouge Pulaski Twp.       Note: If a home is located in an area that is not named on one of these lists, that means the property is located in a Non-Targeted Area. In Non-Targeted Areas, a person is not eligible for the Homeownership program if they have owned a home as their principal residence within the last three years.