Governor Granholm Announces Four MSHDA Programs for First-Time Homebuyers Federal Funds to Encourage Homeownership and Revitalize Neighborhoods
LANSING, MI – July 28, 2009 – (RealEstateRama) — Governor Jennifer M. Granholm has announced the restoration of a federal tax credit program along with new programs that will give Michigan residents an unprecedented opportunity to purchase affordable homes through the Michigan State Housing Development Authority (MSHDA). The funding is provided by the federal Housing and Economic Recovery Act of 2008 (HERA),
“These innovative programs will help Michigan citizens achieve the American Dream of home ownership,” Granholm said. “The program also plays a key role in eliminating blight, revitalizing our communities statewide and helping to strengthen our economy.”
The first program offers new enhancements to MSHDA’s existing Down Payment Assistance Program (DPA). Income limits have been increased to parallel single-family income limits, improving a potential homebuyer’s ability to qualify for DPA loans. Homebuyers may also take advantage of the first-time homebuyer $8,000 federal tax credit provided for under the American Recovery and Reinvestment Act of 2009. MSHDA recently issued bonds totaling more than $300 million that will generate the money to fund the DPA and other single-family mortgage loan programs. Interest rates for a 30-year, fixed-rate mortgage is 6.25 percent.
The second program is the federal Michigan Mortgage Credit Certificate (MCC) program that has been resurrected following a three-year hiatus and allows a tax credit of 20 percent of the interest a borrower pays during the term of a home mortgage.
Two other programs have also been created under the HERA that has allocated $10 million dollars through the federal Neighborhood Stabilization Program to assist new buyers purchasing foreclosed or abandoned homes. This effort will assist communities across the state with elimination of blight and rejuvenation of neighborhoods. The programs are temporary while funding is available.
According to MSHDA Executive Director Keith Molin, the innovative programs are a sign that Michigan’s economic climate is improving and that MSHDA’s housing industry partners such as the Michigan Association of Homebuilders, Michigan Association of REALTORS, Michigan Bankers Association, Michigan Credit Union League, Michigan Mortgage Lenders Association, and the Michigan Association of Community Bankers all applaud the Authority’s innovative programs.
“We are experiencing a great deal of interest in these programs from our housing partners including realtors and lenders,” Molin said. “There are people out there who can and want to buy a home. We are just being responsive to the needs expressed by the people of Michigan and providing the necessary tools to make it happen.”
Molin added that full details of the varying programs are accessible at the MSHDA Web site: www.michigan.gov/mshda. Once at the site click on Homeownership on the left hand side of the home page. All eligibility requirements and program details are readily available.
MSHDA’s vision in the 21st century is to improve the quality of life for all Michigan residents and to create vibrant communities by focusing on providing safe, affordable housing through homeownership and rental programs; ending homelessness; and revitalizing neighborhoods and downtowns. 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 information on this and other MSHDA programs, visit the Web site at www.michigan.gov/mshda
