Michigan Helps First-Time Homebuyers with $25,000 Support Program

In Lansing, Michigan, a new program is offering a big helping hand to people buying their first home. The Michigan State Housing Development Authority (MSHDA) is giving up to $25,000 to help with the initial costs of buying a house. This program, announced on February 18, has $8 million set aside to help about 320 Michigan families purchase their first home.

Amy Hovey, the head of MSHDA, explained that owning a home is key to having a good economic future but it’s been hard for many first-time buyers because of money problems. This program is especially timely because rent prices are going up, making it tough for people to save money. The $25,000 can be a big help, allowing new buyers to finally own a home, which is not only a stable place to live but also a way to build wealth over time.

The assistance comes at a crucial time as the National Association of Realtors noted that the number of first-time homebuyers hit a record low of 24% last year due to high prices, not enough houses for sale, and rising interest rates. While people who already own a home can use their home’s value to help buy another one, first-time buyers don’t have this advantage.

To qualify for Michigan’s down payment help, you must be a first-generation homebuyer, which means you or your parents haven’t owned a home in the last three years, and you’ll need to live in the house you buy. Your income has to be within certain limits, your credit score should be 640 or more, and the house can't cost more than $224,500.

Also, you can't have a parent who has owned a home in the last three years, and you must complete a homebuyer education class.

Lieutenant Governor Garlin Gilchrist said this program is part of a bigger effort to make housing more affordable in Michigan. It builds on previous programs like a $10,000 down payment help and a loan program for first-time buyers. The state is also working on a big plan to improve or build 115,000 housing units by 2027.

For more details on how to apply and see if you qualify for the first-generation down payment program, you can visit michigan.gov/FirstGenDPA.

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