Michigan's first-generation homebuyers have a new financial tool at their disposal, as the Michigan State Housing Development Authority has rolled out a program designed to ease the burden of down payments and other associated homeownership costs. The initiative, dubbed the First-Generation Down Payment Assistance Program, offers up to $25,000 in the form of a loan to help with a down payment, closing costs, and prepaid expenses, as reported by CBS News Detroit.
With a funding pool of $8 million from the state, the program aims to assist over 320 families across Michigan's 83 counties. This initiative is designed to support first-time buyers facing challenges due to rising rents and a competitive housing market. According to the Detroit Free Press, the program is available on a first-come, first-served basis, with MSHDA chief Amy Hovey pointing out, "This financial boost will allow first-generation homebuyers to invest in their futures, strengthen their communities, and build generational wealth."
Eligibility criteria state that applicants must be considered first-generation homebuyers, must not have a history of homeownership in the last three years, and are required to use their new property as their primary residence, according to details shared by mlive. Additional requirements include having a minimum credit score of 640, the target property must have a sale price under $224,500, and the buyer must take a homebuyer education class from a HUD-approved agency along with meeting other program stipulations.
Interested individuals seeking to take advantage of this opportunity will need to engage with approved lenders first and must navigate to Michigan.gov/firstgendpa for the full rundown on application procedures and additional program details, directions presented by the Detroit Free Press article.
As a state, Michigan continues to forge ahead with efforts to enhance housing accessibility with this particular program adding to an array of initiatives that include a $10,000 down payment program and a loan assistance program targeting first-time homeowners, "It builds on our historic investments to expand affordable housing across Michigan and MSHDA’s record success each of the last two years," Lt. Gov. Garlin Gilchrist stated, a comment that was obtained by mlive.
