How will MSHDA products help my customers? |
- Clients can receive free homebuyer education
- Buyers can apply for a 0% interest rate, no payment loan for down payment and closing cost assistance
- Federal tax credits are available for eligible first-time homebuyers
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| How do I find an experienced loan officer? |
Access our Experienced Loan Officer list to locate and contact a loan officer directly |
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| What are the eligibility requirements? |
- First-time homebuyer (no homeownership in previous 3 years) unless purchasing in a targeted area
- Household income must fall within income limit guidelines
- Sales price must fall within the sales price limits
- Buyer occupies the home as their principal residence
- Acceptable credit history with no open collection or judgment accounts
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| What is a targeted area? |
Federally designated areas of slow economic growth where the first-time homebuyer requirement is waived |
| What are eligible properties? |
- New or existing single-family homes
- New or existing multiple-section manufactured homes built after 6/14/1976 and permanently affixed to real estate
- Approved condominium developments
- Lot size generally cannot exceed two (2) acres
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| Where can my client find a MSHDA-approved counselor for Homebuyer Education? |
Visit our Housing Counseling Locator or call 517.373.6840 |
| Does MSHDA compensate lending institutions for loans? |
Approved lenders can earn 2% - 3% on MSHDA loans: |
- 1% origination fee from the borrower
- 1% DPA Premium (if MSHDA's Down Payment Assistance is used)
- .75% Service Release Premium
- .25% Loan Incentive Fee (if closing documents are received and purchased by MSHDA within 15 days of closing)
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| Does MSHDA provide training classes for mortgage and real estate professionals? |
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| What is the Recapture tax? |
| MSHDA loans are funded through the sale of tax-exempt bonds which benefits borrowers by lowering the loan interest rate, some borrowers are required to repay the government a portion of their gain upon the sale of their home within the first nine years. |
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| MSHDA will reimburse borrowers for any recapture tax paid to the IRS. |
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| For more information, visit MSHDA's Reality of Recapture |
