Financing in 01915>Question Details

Jennie Piele…, Home Buyer in 48220

Can you get a FHA 203K Loan and a MISHDA Loan? If not does the FHA loan help cover the closing costs or down payment? If so how much?

Asked by Jennie Pielecha, 48220 Tue Jun 28, 2011

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Jennie - please get with Rudy on this, he definitely knows what he is talking about and can help you with those down payment assistance options since he is right there in Michigan, and pretty much all of them require you use a lender located within Michigan.
0 votes Thank Flag Link Thu Jun 30, 2011
Hi, Jennie. I live and work in MI. Oakland County has a ADDI (American Dream Down Payment Initiative) program that applies up to 7,500 towards your down payment and closing costs. Here's the contact info:

For Oakland County ADDI information contact the Oakland County Community and Home Improvement Division, Bldg. 38E, 1200 N. Telegraph Rd., Pontiac, MI 48341-0414 (248) 858-0493.

Website(s) : http://www.oakgov.com/chi/
http://www.ferndale-mi.com/Services/CommunityDevelopmentServ…

Shore Mortgage was founded on and specializes in FHA and VA loans. Please feel free to contact me if you need any further assitance: 800-678-6663 Ext 70467
0 votes Thank Flag Link Thu Jun 30, 2011
Word of Caution:

I have helped many clients with construction loans and FHA203k Loans. And if you don't have the money for down payment, and don't have the money for closing costs, what happens when you get into the renovation and it turns out there is more damage or issues requiring more money to complete your project? Because it usually happens. And I do mean USUALLY, as in, almost always. This is a construction project. Prices change, issues arise and who knows what's really wrong with the house until they start renovating.

So, be very careful about getting into this type of project if you don't have the money reserves to ensure you don't get yourself into financial trouble.


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0 votes Thank Flag Link Thu Jun 30, 2011
You are welcome. I don't live in Detroit but I am getting familiar with the county names. To find it you have to know what to Google for, basically you just put in "[county name], [state] housing department" (without the quotes) into Google and wouldn't hurt to put in "down payment assistance" or some variation of it as well.

http://www.macombcountymi.gov/mccsa/ida.htm
http://www.oakgov.com/chi/housing_counsel/housing_solutions.…
http://www.ferndale-mi.com/services/communitydevelopmentserv…
0 votes Thank Flag Link Thu Jun 30, 2011
Thank you for that. I was wondering where you got that website. We are looking in Macomb and Oakland county so maybe if I look on thier websites they will have something for that.
0 votes Thank Flag Link Thu Jun 30, 2011
I see - it sounds like their down payment assistance programs don't work in conjunction with the 203k version of the MSDHA loan program. You'd have to find additional down payment assistance, as far as I know in Michigan MSHDA is the big one. I checked in Troy & Sterling Heights for you but neither had a down payment assistance program, however Wayne County has the HOME Program which you may be able to use along with MSHDA (or instead of MSDHA). http://www.waynecounty.com/edge_commdev_HOME.htm
0 votes Thank Flag Link Thu Jun 30, 2011
oooo, I didn't relize that that was an area code. LOL. Right now have a FHA MISHDA loan so we don't have to pay but like 1% down payment and nothing for closing right now. When we sell the house we pay it back from what I understand. Anyways, the houses that we are looking for in our price range need work so they said we could get the FHA 203K loan but then we have to put a higher % down and pay for all the closing and we don't have that money. Is there a way that we can get around that or something?
0 votes Thank Flag Link Thu Jun 30, 2011
The reason Andrew asked is because you posted in Beverly, MA, 01915 zip code, not in Michigan.

Here are MSDHA's lender guidelines for FHA loans: http://www.michigan.gov/documents/mshda_fha_product_specs_16…

It only says for eligible products:
MSHDA FHA (standard)
MSHDA FHA with Down Payment Assistance (SF-DPA) Option*
MSHDA FHA with Step Option
MSHDA FHA with both Step and Buydown Option

Here is the list of all of MSDHA's loan programs, kind of an "overview", it's for us mortgage lenders but I am sure you could understand most of it: http://www.michigan.gov/documents/mshda_loan_product_matrix_…

MSDHA has a rehab program, but it's a conventional rehab program/appears to need 20% down.

FHA loans do not cover the closing costs or down payment, however MSDHA has the down payment assistance programs that can cover the down payment & closing costs (up to $7,500), see:
http://www.michigan.gov/mshda/0,1607,7-141-41341_42054_42058…

The down payment assistance "specs": http://www.michigan.gov/documents/mshda/mshda_dpa_product_sp…
0 votes Thank Flag Link Wed Jun 29, 2011
I'm in Michigan. I don't know bout MA.
0 votes Thank Flag Link Wed Jun 29, 2011
Jeannie,

Are you in Massachusetts or Michigan? I have never heard of a MISHDA loan in MA.
0 votes Thank Flag Link Wed Jun 29, 2011
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