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 “clear-to-close” 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/Affadavit to be approved prior to closing. Call 248-674-6450 if you’d like to get a $3,000 grant towards your down payment!
Is There Still a State of Michigan Home Buyer Credit?
There is no longer a state of Michigan home buyer credit, but there are still first-time home buyer programs in Michigan that can help you buy a home. Even though the credit itself has not been extended, there are still ways you can get your first house, with some help.
FHA loans are great for first time homeowners of modest incomes, because they generally let you put less of a down payment down (only 3.5% of a home’s final selling price as opposed to the 10 or even 20% most lenders want these days, or 30% if your credit scores less than 580), and they’re generally available to people with less than perfect credit scores as well. Even though it’s not likely you’ll qualify for even an FHA loan if your credit score is less than 640, you can qualify, in general, if your credit score is at least that. Most lenders today want at least a credit score of 700, which even a state of Michigan home buyer credit could not help you overcome.
First-time home buyer programs and the State of Michigan Home Buyer Credit
There are grant programs available that can help you come up with money for closing costs and a down payment. Do a search for programs available in your area, to see what’s available.
Other things you need to have if you want to get your first home
You’ll also need to have certain qualifications to get into your first home, even if you qualify for an FHA loan or other first-time home buyer programs. Regardless of the state of Michigan home buyer credit (or lack thereof), you’ll still need to have certain qualifications to qualify for a home. These include:
A good credit history
In order to qualify for a home, you’ll need to have a good credit history. That is, you’ll need to have a clean credit history that shows you make payments on time, and are a good credit risk. Pull your credit reports and make sure they are accurate, before you apply for a mortgage. If they’re not, you can challenge inaccuracies by contacting each of the credit bureaus and asking that they remove them. Credit bureaus have to investigate inaccurate information and remove it, usually within about 60 days.
An adequate credit score
As a first time home buyer, you’ll generally need a credit score of at least 700 to qualify for conventional loans. If your credit scores less than that, you probably won’t be able to qualify for a conventional loan, although you may still be able to qualify for loans meant for people of more modest means; for an FHA loan, for example, you generally need credit score of at least 580.
An adequate debt to income ratio
Most first-time home buyer programs Michigan require that you have an adequate debt to income ratio in order to qualify for a home loan. Your lender can help you figure out what this is, but in general, the limit for a debt to income ratio is 41%. That means that no more than 41% of your gross income goes toward all debt (including your mortgage, student loans, car payments, credit cards, etc.).
An adequate (and steady) income
You will have to show that you have an adequate income to buy a home — and that was true even when you could qualify for the state of Michigan home buyer credit. As a general rule, the cost of housing cannot exceed 29% of your total gross income. That includes your mortgage payment amounts, taxes, and insurance.
Life goes on after the state of Michigan home buyer credit
So, as you can see, there are still some great opportunities available to first time home buyers even though the state of Michigan home buyer credit is no longer available.