Frequently Asked Questions
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
How do I find an experienced loan officer?
Access our Experienced Loan Officer list to locate and contact a loan officer directly
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
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
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)
Does MSHDA provide training classes for mortgage and real estate professionals?View and register for Lender trainings or call 517.373.6840
Request a real estate Continuing Education class or call 517.373.6840
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.
MSHDA will reimburse borrowers for any recapture tax paid to the IRS. For more information, visit MSHDA's Reality of Recapture