Repeat Home Buyer’s Who Are Eligible for First Time Home Buyer Programs

Dear Friends,

Did you know that the first time homebuyer programs through the Michigan State Housing Development Authority (MSHDA) are in some cases available for repeat home buyers!?!?  There are 2 exceptions that allow a repeat home buyer to take advantage of these MSHDA programs. One exception would be when the repeat home buyer has waited 3 years between selling their current home and entering into a contract for a new home. The 2nd exception is if they are to buy within a “targeted area” and in this case the repeat home buyer does not have the 3 year waiting requirement. Targeted areas in Kent County are the Cities of Grand Rapids, Kentwood, Wyoming, Kent City and Spencer Township.  Targeted areas in Ottawa County are Allendale Township, Chester Township and the City of Holland.  The entire counties of Allegan, Barry & Newaygo are all targeted.

Over my career I have been blessed to have worked with over 2,000 first time home buyers.  I have gained the niche for working with first time home buyers by being a trusted source in educating them, being constantly available and responsive nights, weekends, and at all times for their questions and needs; and finally, having a keen sense in understanding all of the mortgage programs, and what best suits their personal situation.  As a client, I cannot thank you enough for your business in working with me when you bought your first home; but also so many of you in coming back to work with me again and again as you have moved up to your new homes, and when refinancing your current homes.  Likewise, I am forever grateful for all of the referrals you have provided me with over the years.  I would like to this opportunity to ask again for any referrals of your friends or family and co-workers that you may know who may be looking to purchase a new home and will be in need of mortgage financing.

Due to the increase in interest rates and the gradual shift from being a red hot seller’s market to a more balanced market between buyers and sellers, we are seeing first time home buyer programs offered by MSHDA become more relevant.  That is, offers with MSHDA financing are now being more widely accepted by sellers than in 2020 and 2021 when on average, they had more cash offers and appraisal gap guarantee offers to choose from.  Furthermore, the MSHDA programs are proving to be more advantageous for the buyer as the spread between their below market rates and existing mortgage market rates has become wider.

The 3 main MSHDA Programs are:

  1. The M.C.C. Tax Credit:  This is a program where homebuyers can credit 20% of their annual mortgage interest paid against their year end tax liability.  A tax credit is not a deduction in “taxable income,” but is a dollar for dollar reduction in tax liability.  The tax credit is allowed every year for the lift of the original mortgage (up to 30 years).

  2. The MI Home Loan:  This is a 30 year Fixed Rate mortgage with below market interest rate.  This rate as of 6/16/2022 is currently at 5.25% (APR 5.595%)

  3. The MI Home Loan with Down Payment Assistance (or DPA):  This is a program in which MSHDA will provide a 0% non-amortizing mortgage of either $7,500 or $10,000 depending on zip code.  The non-amortizing means there are no payments to be made on the 2nd mortgage until the house is sold or refinanced.  The buyer has to invest at least 1% of the sales price with their own funds with this program.  The first mortgage is a 30 year fixed rate and as of 06/23/2022 it is currently at 5.75% (APR 6.087%).

Note:  All 3 MSHDA programs have restrictions on qualifying and potential re-capture tax implications.

However, MSHDA does provide a re-capture tax reimbursement program for those whom it may apply – Learn More

Thanks to you, I have been able to provide the most excellent service for my customers by working by Referral Only. You truly are a lifetime collection of the Best Clients any service provider could ask for. <3

Together Naomi and I have over 60 years of combined experience to assist you. Please let us know how we may help you, or your friends, family or co-workers this year. We <3 Referrals!