Things you may not have known about MSHDA

Mortgage and Lending with Alan Lacey- 783169

I am sure we are all getting more familiar with the MSHDA product line, but here are a few misconceptions that I have been helipng my clients break.

For example.

I just had a client who had sold their previous home and was moving to a new area and had 20% to put down on the purchase of a new home. Both the borrowers worked. They thought there was now way that MSHDA would help them. Well if you take a closer look if you buy in a targeted area prior home ownership doesn't matter. Even though both clients worked they also had 1 child and in that area that meant the income limit was $84k a year. Again a nice solid middle class couple with money to put down that without my attention would be paying way too much for the loan. They are now able to obtain fixed rate financing for nearly 1% below the market rate.

MSHDA reminders

  • allows a purchase price up to $224,500
  • in most areas if you have children you can make up to $85,000 a year
  • you can use outside downpayment assistance companies to get into a home with 0 money out of pocket
  • You can be putting a substantial amount of money down
  • There are credit score adjusters so the savings are even more substantial for credit scores under 720

Want to find a list of the targeted area and income limts well try this link

You will be suprised at how many clients can fit into this program and dramatically reduce their house payments and interest rate.

Why don't more people know well I think a lot of lenders shy away from the additional paperwork or aren't approved to do MSHDA loan.

I also think many Realtors have far more concern than is necesary about MSHDA running out of funds and the additional time alotment for the MSHDA process.

Currently MSHDA rates are at 5.625% yes there is a 1% origination fee with MSHDA loans, but the interest savings pays for that in about 2 years.


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Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Alan, Thanks for posting this helpful information about the MSHDA program.  Hope you had a great 4th of July weekend.

Jul 05, 2008 02:23 PM #1
Michelle Gordon
Keller Williams Realty, Independently owned and operated - Grand Rapids, MI

I have done many MSHDA loans with my clients!  I have always loved seeing my clients get a great interest rate, and an affordable mortgage.  I wish they would allow for the MSHDA PIP and MSHDA loan work together, so they can approve a home loan knowing the nessary repairs are going to be done after the close.  As many homes in the target area need work and will not approve for MSHDA loan.

Jul 07, 2008 07:35 PM #2
Alan Lacey
Alan Lacey- - Grand Rapids, MI

repairs are one of the huge issues in a market where nearly half of sales are foreclosures and unfortunately there just aren't any solutions that are easy on the client. Sure you can do a FHA 203k, but they are paperwork intensive and make it very difficult for those handy folks to do the work themselves. I wish I had a program that was the answer, but unfortunately no one really does as far as I can tell. One of the reasons I am happy to be at a bank is that I can at least refer clients to a personal banker to get good information on non real estate loans.

Jul 08, 2008 06:27 PM #3
Jess Sobel

If you have a client or customer whom is getting a MSHDA loan to buy a house, they can get a PIP loan for repairs (assuming they are income-qualified, have reasonable credit, and meet the other guidelines) as long as they will be moving into the house within 60 days from closing the loan.

Oct 06, 2008 03:05 PM #4
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Alan Lacey

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