UPDATE: 03/25/2013 – Michigan Homebuyer Assistance Grant Program
We received the following email from the state on March 25th regarding this grant program;
“As of March 25, 2013 approximately $3,000,000 remains for Homebuyer Assistance Grants. As we begin the process of winding down the Homebuyer Assistance grant program, after 5:00 p.m. on Friday, March 29, 2013 we will no longer be able to accept Homebuyer Assistance grant applications for NON-military homebuyers. Please be sure to notify your borrowers and staff accordingly, and remember, applications uploaded through DEG must be approved by your underwriters with a â€œclear-to-closeâ€ and a firm closing date that is scheduled within 30 calendar days.
We will continue to fund Homebuyer Assistance grants for active military and veteran homebuyers, with preference given to disabled veterans, until all remaining funds have been disbursed.”
So, unless you are active military, or a Veteran, you can no longer receive this grant. However, there are still some great mortgage programs available in Michigan with zero down payment options as well as very low down payment options. Houses are still on sale and rates are still very low so buying a home still makes good financial sense! Call us today at 248-674-6450 to discuss your home buying options and you may be surprised as to what is still available.
UPDATE: 12/06/2012 – Michigan Homebuyer Assistance Grant Program
The Michigan Homebuyer Assistance Grant program is available for Michigan first time home buyers purchasing an owner occupied single family home. Military borrowers are eligible for up to $5,000 in down payment assistance and non-military are eligible for up to $3,000. There is no lien and no repayment is required.
In order to qualify you must meet the above criteria as well as work with an approved lender such as Michigan Mortgage Solutions. You will also need to complete a Homebuyer Assistance Grant Program Application/Affidavit to be approved prior to closing. Call 248-674-6450 if you’d like to get a $3,000 grant towards your down payment!
Are There Still Michigan Home Buying Incentives?
Everything you should know about Michigan home buying incentives.
Although formal Michigan home buying incentives have expired, you can still certainly get Michigan first time home buyer assistance specifically meant to help you buy a home. Let’s take a look at what you can do to get into your first house.
Are you of modest means?
Although FHA loans are not necessarily geared toward people of modest means, many people use them because they have lower down payments than traditional ones do, and because people who have less than stellar credit can still sometimes qualify for a loan. FHA loans require that you have at least a credit score of 620, in general, which is a much lower credit score than traditional lenders offer; with traditional lenders, you’ll need a current credit score of at least 700 to qualify.
Michigan first time homebuyer assistance as “Michigan home buying incentives”
Again, although the formal Michigan home buying incentives program has expired, you can still get help to get into your first home by applying for one of the many grants available to first-time homebuyers; these grants can help you come up with a down payment and provide closing costs.
Other things you’ll need to know
Of course, no lender is going to take a look at you — not even those specifically geared to help first time home buyers of modest means — if you don’t have your own “financial ducks in a row,” so to speak. Your lender can certainly help you get the paperwork in order, but specifically, you’ll need:
A decent credit score
For a traditional mortgage, you’ll need a credit score of at least 680, or at least 620 to qualify for an FHA loan. Pull your credit reports and make sure there are no mistakes on them that could lower your credit score unnecessarily. If you pull your credit reports and find mistakes in them, contact the bureaus in question and have them investigated and removed. In general, credit bureaus have to investigate and remove inaccuracies within 60 days.
Your credit history and qualifying for Michigan home buying incentives
In general, your credit history has to be “clean,” in that you’ve had no negative activity on it for at least two years; that means that you haven’t filed for bankruptcy within the last seven years, haven’t had difficulty paying bills, had late payments, or credit card or loan defaults. If you do have a poor credit history it’s not likely that you’ll qualify for any Michigan home buying incentives, including help with closing costs, an FHA loan, etc.
However, the good news is, if you do the right things and begin work on cleaning up your credit history, you will be able to qualify within six to twelve months. Most people have little knowledge on how the credit scoring system works and with a little research and some tweaks to your behavior, you could have good credit in no time.
A steady income to support your debt load
Lenders look to see that you’ve been employed steadily for at least two years if you’re looking to buy a home. In order to qualify for informal “Michigan home buying incentives” like an FHA mortgage or help with closing costs and down payment, you’ll need to be able to show that you can afford the home you want to buy. Your debt to income ratio (which is your total debt divided by your gross income) can’t exceed 41%. In addition, your projected housing costs (including your mortgage payments, taxes, and insurance) can’t exceed 29% of your gross income. Contact your mortgage broker so you don’t miss out on any of the Michigan home buying incentives in your area.