How does MSHDA loan work?
The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.
Do you have to pay back a MSHDA loan?
“It’s a zero-interest, non-amortizing loan and there are no monthly payments,” he said. “However, the loan is due upon the sale or transfer of the property, or if the first mortgage is refinanced or paid in full.”
How do you get approved for MSHDA?
To qualify for the MSHDA loan, you need to have a 640 credit score. Do you have at least a 640 credit score? If so, then you’re eligible for a MSHDA loan — even if you think that’s a bad credit score. A score lower than 640 will make you ineligible.
Are MSHDA loans forgiven?
We’re happy to introduce the program because, unlike the current MSHDA down payment assistance program, it’s a forgivable loan. In five years, if the borrower still occupies the home as their primary residence, the loan is completely forgiven.
How long does it take to get approved for MSHDA loan?
A complete list of the requirements and application to become a MSHDA MI Home Loan Lender can be found at the following link MSHDA New Lender Application. If all of the required documentation is submitted, application review will be completed in approximately 3 weeks.
Can I refinance if I have a MSHDA loan?
The Property Cannot be Transferred or Refinanced Without Paying off the MSHDA mortgage. In today’s society it is a sad fact that 50% of all marriages end in divorce.
Is MSHDA a FHA?
Available in 236 zip codes statewide. MSHDA financing can be used easily with most loan types; Conventional, FHA, VA, or RD.
Can you subordinate a MSHDA loan?
This is not allowed if a homebuyer uses the MSHDA funds. They will not make any exceptions in subordinating the 2nd mortgage lien that they place on the home which would be a requirement to refinancing. The home owner must repay the 2nd mortgage in full to qualify for a refinance.
How much is the down payment for MSHDA?
The minimum down payment is 3% and down payment assistance is available. Available to first-timers as well as repeat home buyers in economically disadvantaged target areas. You have your choice of conventional, FHA, VA or USDA loans.
What is MSHDA Flex?
The MSHDA (Michigan State Housing Development Authority) MI Home Loan Flex provides down payment assistance of up to $7,500 to Michigan first time and repeat homebuyers. It is a more flexible alternative to the MI Home Loan Program.
Can I refi my MSHDA loan?
How long does it take to get approved for Mshda loan?