LANSING, Mich., Dec. 11 /PRNewswire-USNewswire/ — The Michigan State Housing Development Authority (MSHDA) announced today that it intends to issue bonds in the aggregate principal amount of $385,000,000 on or before December 31, 2007, and to use the proceeds of such bonds to make mortgage loans to eligible low and moderate income applicants to finance single family homes. Reservations are now being accepted for the loans to be made from the proceeds of the bonds.
“Michigan has been a national leader in making housing more affordable for low and moderate income families,” MSHDA Executive Director Michael R. DeVos said. “Through this program, more hard-working families in Michigan will be able to realize their dream of homeownership.”
MSHDA will sell $385,000,000 in bonds to investors, which will be used to fund loans that carry a below-market interest rate.
According to DeVos homebuyers with household incomes of $60,500 to $74,750, depending on the location of the property, may qualify for the 30-year loans to buy new or existing homes.
Eligible homebuyers with incomes of 80 percent of county median or less (adjusted for family size) also may qualify for up to $7,500 in down payment assistance, which is available for some of MSHDA’s loan programs.
“We recognize that many homebuyers can afford mortgage payments but have limited resources for the down payment needed to buy a home,” DeVos said. “By offering this assistance, we can help families who otherwise might be shut out of the market.”
Buyers may purchase a home costing from $195,000 to $224,250, depending on the location of the property.
The Michigan State Housing Development Authority is not a direct lender; therefore, interested applicants can locate a MSHDA Participating Lender at www.michigan.gov/mshda.
MSHDA raises funds to finance home mortgages through the sale of mortgage revenue bonds to investors. No state tax dollars are used. To date, the agency has financed over 50,000 home purchases in the Single Family program, for an investment of $2.2 billion.
MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.
SOURCE Michigan State Housing Development Authority
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