Cranbrook Loans is one of the top MSHDA lenders for MSHDA loans in Michigan. Below is a description for both.
The program is for low to moderate income home buyers which varies based on your family size and location in which you want to buy.
You can potentially qualify for for a down payment assistance of up to $7500 to be used for the down payment, closing costs, prepaids, and establishing your escrow account.
What Are MSHDA Requirements To Qualify For A MSHDA Loan?
Each adult must credit qualify by having a minimum middle credit score of 640. The borrowers must occupy the property
and the combined income from all of the occupants must be within the guidelines established by the state for that area.
This is what we call a “soft second mortgage”. There is zero interest charged and non amortizing loan with no monthly payments.
The maximum down payment assistance is $7500 for the MI First program. The maximum assets that the borrowers can have is limited to $10,000, meaning checking, savings etc can not total more than $10,000. Retirement programs such as IRA’s and 401k’s are not included in the calculation of assets.
The eligible loan types that can be used with the Mi First program are FHA and Rural Development loans.
Applicants must complete a home buyers counseling program.
The borrowers must contribute a minimum of 1% towards the sales price.
The money is repaid when the borrower either sells or refinances the property.
Borrowers must qualify with the maximum debt to income ratio for the “back end” ratios is 45% which includes principle, interest, taxes, insurance and all other monthly debts reporting on the credit report as well as alimony or child support owed.
New or existing single family homes, are eligible properties and condos are eligible if they can prove they are FHA or Fannie Mae approved.
Contact me to see if you qualify for for the MI First MSHDA program. Greg Kitchen 866-421-2821
Mi Next is a MSHDA program for borrower who are not first time home buyers. repeat buyers may be eligible for down payment assistance up to $7500 or 4% of the purchase price, whichever is less. The money can be applied towards the down payment, closing costs, pre-paids and establishing an escrow account for the payment of taxes and insurance.
The applicant must contribute a minimum of 1% of the sales price in the transaction.
The buyer must occupy the residence as their primary home.
The applicants income must fall within the guidelines established by the state. The sales price must also fall within the sales price limits established by the state with in the area of where the home is located.
Unlike the Mi First, all adults in the household DO NOT have to apply. Only the qualifying applicant will be underwritten for credit, assets and income.
the eligible loan types that can be used with the Mi Next program are FHA, rural development loans and VA loans.
The minimum middle credit score for the Mi Next program in 2016 is 660.
The asset restriction is also $7500 for the Mi Next program
and like the Mi First program does not include assets from IRA’s and 401k’s.
Buyers must complete a home buyer education program to qualify for the program.
the applicants debt to income ratios must not exceed 31% of the monthly gross income for the principle, interest, taxes and insurance (PITI) and 43% of the gross monthly income for the PITI and all other monthly debt reporting on the credit report as well as any child support or alimony owed monthly.
The mortgage process can be found on this page.
Contact me today or Apply Here to see if you qualify for the Mi Next MSHDA Loan program.
Contact Greg Kitchen For Your Mortgage Needs
866-421-2821. I will put my 23 years of experience to work for you to get you the best mortgage for your needs.
* Subject to underwriters approval
View The Video To See How One Client Benefited from The MSHDA Program!
Down Payment Assistance is Now Available For Qualifying Home Buyers!
You May Own A Home For As Low As 1% Of Your Own Funds.
Call Greg Kitchen Today To
See If You Qualify
Or Fill Out The Form Above!