I am closing on a MSHDA neighborhood stablization loan next week. This is an 80/20 loan as mentioned earlier, how the buyer has renovation money to use to repair or upgrade. Very exciting loan. There are guide lines and rules that have to be followed, but my buyer is purchasing a home for 59,500 - and getting 12,000 in repair/upgrade money. Only can be used for bank owned homes, and homes have to be in a declining area..............but what a great way to improve our neighborhoods and homes and at the end of the day a great place for my buyer to live!

There are two mainstream MSHDA loan programs that are offered. The first is the Michigan Credit Certificate Program. It is a federal tax credit made available only through participating lenders on a first come, first serve basis in the state of Michigan. This program allows home buyers to receive a tax credit for 20% of their annual mortgage interest they have paid.

The second program is the Down Payment Assistance program which allows a borrower to purchase a home with only 1% down. The down payment assistance is a second lien that is placed on your home for the rest of the required down payment (determined by your loan program and available up to $7,,500). This lien is a zero percent interest loan that is non-amortizing. It is due upon sale of the property or when the mortgage is paid in full or refinanced.

More detailed information is available on these programs at http://www.mshdalender.com

MSHDA loans can be a great way to get into a new home for a reasonable interest rate and lower downpayment. The website that Gary suggested is a great starting point.
You should also be aware that simply because a company or individual advertises that they can do MSHDA loans...well, it may not mean that they have actually done them or succeeded in processing them. Make sure you inquire about the track record with this loan as it tends to involve more steps than most traditional loans.

Another option to consider are FHA loans which are another way to enter into a loan agreement with fairly good terms. In today' s lending climate, there are a lot of changes taking place. It is important to work with a lender who is well versed in these changes and who keeps you regularly updated as to the impact these changes may have on you. We work with several excellent lenders in the Grand Rapids, MI area and would be happy to forward a recommendation.

Emnb,

It would appear Ben and I are suffering from Holiday lag.

This website should work http://www.michigan.gov/mshda

Click on home ownership for more information on the left menu.

Sorry for the bad link.

We offer MSHDA loans. You can contact me at 616-363-0585 and I can help you determine if you qualify for one of their programs. You can get information at our site which is http://www.mshdalender.com or you can go directly to the states site which is http://www.michigan.gov/mshda.

Ben DeHaan

Emnb,

http://Michigan.gov/MSHDA

There are qualifications you must pass and a list of lenders providing the product on the website. There are also local agents on Trulia working with some of the lenders that may be able to assist you.