Industry News

Buy a House for 3% Down and Get $7,500 in MSHDA Down Payment Assistance

October 23, 2017

Did you know the Michigan State Housing Development Authority (MSHDA) allows conventional financing to be used in conjunction with its down payment assistance program? This means buyers can use conventional financing to purchase a house for as little as 3% down and receive up to $7,500 to use toward their down payment and closing costs!

Geared toward homebuyers who may lack the resources to save for a large down payment, the ability to combine conventional financing with MSDHA’s down payment assistance program reduces the upfront cost of purchasing a home.

By combining MSHDA’s down payment assistance program with a conventional loan, new homebuyers will be able to borrow up to $224,500, with very little money out of pocket. With a minimum contribution of 1% of the purchase price, housing is made more affordable and put within reach of those who meet standard underwriting guidelines.

Here are some additional benefits that come with a MSHDA conventional loan:

Increased negotiating power. One way to make your offer stand out in a competitive market is to use conventional financing. When presented with multiple offers, sellers are more likely to favor buyers using a conventional loan for numerous reasons.                                                                                                        

Lower private mortgage insurance (PMI). There is no upfront mortgage insurance on conventional loan products, and the monthly mortgage insurance is a lower factor. Conventional borrowers also have the ability to get rid of PMI once they reach 20% equity in their home.

Conventional loans can be used to finance practically any property. Conventional loans are accepted for just about any property, including condos.

At Ross Mortgage, we believe everyone deserves the opportunity of homeownership. As one of the top MSHDA-approved lenders in Michigan, we work hard to make sure individuals are educated about financial assistance programs offered through the state.

Our personal approach to lending has helped us earn the trust of Michigan homebuyers for nearly 70 years. We treat each loan as if it were our own and work closely with buyers to find a customized financing solution that’s tailored to their needs.

Contact us today to find out if you’re eligible to receive financial support through the MSHDA down payment assistance program.