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MSHDA Rate Relief Mortgage
Notice: Rate Relief Mortgage Program Funds Exhausted
Due to overwhelming demand, all available funds for the MSHDA Rate Relief Mortgage Program have been fully committed. MSHDA is now operating from a waitlist and will allocate funds to those on the list as additional resources become available.
We appreciate your interest in this first-of-its-kind program, which has helped make homeownership more affordable for hundreds of Michigan families.
What is the Rate Relief Mortgage?
The MSHDA Rate Relief Mortgage will be a game-changer for Michigan families. It’s a first-of-its kind new mortgage loan that drives down the mortgage interest rate for eligible first-time homebuyers by a full percentage point. This would not be possible if not for the partnership of the Federal Home Loan Bank of Indianapolis.
The FHLBank Indianapolis is purchasing a $50 million bond issued by MSHDA. The proceeds from the sale will support hundreds of single-family mortgage loans at below-market rates, provided the buyer finances their purchase with a MSHDA-approved lender that is also a FHLBank Indianapolis member institution. This will make homeownership more accessible and affordable for hundreds of lower-income Michigan home buyers making 80% or less of Area Median Income. Saving first-time homebuyers a full percentage point on their mortgages will make a big difference and help more families make it in Michigan.
At the time this program was established, MSHDA’s current market rate with DPA was 6.375; through this program, the rate would drop to 5.375%. On a $150k home purchase, about the average MSHDA mortgage, this new lower interest rate reduces the mortgage payment by about $100 a month – that’s $1200 a year.
Who’s eligible?
- First-time homebuyers with a qualifying income at or below 80% of Area Median Income (AMI). | Income and Sales Price Limits
- Credit score of 640 or higher.
- Buyer must work through an FHLBank Indianapolis member that is also a MSHDA-participating lender.
- Other qualifications:
- New or existing single-family residences, including some types of manufactured homes
- 30-year terms, sales price can’t exceed $224,500.
- Other restrictions may apply.
How do I apply?
Interested first-time homebuyers can get more information at their local lending institution. Current FHLBI Member institutions that are also MSHDA participating Lenders are listed below. There are dozens across Michigan, offering mortgages in all 83 counties. FHLBank Indianapolis members can find more details on the Bank’s MemberLink portal as well as through direct member communications.
Approved lenders for the MSHDA Rate Relief Mortgage
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This list may not be all-inclusive. Don’t see your bank or credit union listed? Contact your bank or credit union to see if they offer the Rate Relief program or are working with a MSHDA Approved CUSO partners, Members First Mortgage, Mortgage Center, and Neighborhood Mortgage Solutions to offer this program.