LANSING, Mich. Michigan is helping provide lower interest rates to first-time homebuyers in eight cities.
About 300 individuals or families in Detroit, Grand Rapids, Flint, Pontiac, Saginaw, Battle Creek, Benton Harbor and Jackson can take advantage of a program announced Friday.
First-time homebuyers who meet eligibility requirements can get a 3.125 percent mortgage interest rate without down payment assistance. If they need help with their down payment, the interest rate is 3.625 percent.
Gov. Rick Snyder says he wants to increase home sales in five cities hit hard by blight and three other cities needing a boost.
Michigan State Housing Development Authority Executive Director Scott Woosley says most of Michigan's real estate market has bounced back, but some areas are still experiencing significant sales declines.
Michigan State Housing Development Authority media release
Gov. Snyder and Michigan State Housing Development Authority (MSHDA) Executive Director Scott Woosley today announced a new tool to stimulate the housing markets in eight Michigan cities.
Residents in the five Hardest Hit Fund-designated blight cities of Detroit, Flint, Grand Rapids, Pontiac and Saginaw, as well as Battle Creek, Benton Harbor and Jackson will be able to take advantage of a $30 million set-aside of funds to provide lower interest rates to potential first-time homebuyers.
“While many communities have seen dramatic improvements in their real estate markets, this should provide a welcome incentive and help boost sales in areas of the state that need it the most to stimulate Michigan's continued economic comeback,” Snyder said.
MSHDA’s Homeownership Division designed the program, which offers potential first-time homebuyers meeting all eligibility requirements in the eight cities low interest rates: 3.125 percent without down payment assistance and 3.625 percent with DPA.
Funding for the loans comes from the sale of mortgage revenue bonds, which are a general obligation of MSHDA.
“In the past few years, most of the state’s real estate market has had an incredible recovery,” Woosley said. “This is an opportunity to target money in areas that are still experiencing significant sales declines and help drive the market turnaround for these communities.”
The special offer of the MI First Home program will be available through participating lenders on a first-come, first-served basis until the funds have been expended.
“We anticipate the program will help about 300 individuals or families across those eight cities realize the dream of homeownership,” said Mary Townley, MSHDA Homeownership division director.
Learn more at Michigan.gov/mshda and click on the Homeownership tab.