More about MSHDA Loans
Down Payment Assistance (DPA) may be available from MSHDA to help you purchase your home. It is a second mortgage that must be used in conjunction with MSHDA’s MI First Home or MSHDA’s MI Next Home first mortgage. This program is for low- to moderate-income homebuyers, depending on the home location and your family size. MSHDA’s DPA loan programs require the homebuyer to take a homebuyer education class from a MSHDA approved agency or a HUD approved agency. The homebuyer education class will give you valuable information as you take that first step toward homeownership.
- Available with MSHDA’s FHA or Rural Development first mortgages
- Funds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a qualified home inspector
- Zero-interest, non-amortizing loan with no monthly payments
- The loan is due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full
- Maximum Down Payment Assistance is $7,500 or up to 4% maximum with the MI Next Home program
A minimum credit score of 640 is required or 660 for multiple-section manufactured homes permanently affixed to a foundation, built after June 14, 1976 and taxed as real estate (not located in a rent/lease community)
MSHDA – MI First Home Program
MSHDA offers programs that assist both first-time homebuyers and repeat buyers in Targeted areas with Down Payment Assistance up to $7,500. These funds can be used towards the down payment, closing costs, taxes and insurance that are due at closing. This greatly reduces the cash needed to close on a home purchase.
MSHDA Eligibility requirements include:
- A minimum credit score of 640 is required or 660 for multiple-section manufactured homes permanently affixed to a foundation, built after June 14, 1976 and taxed as real estate (not located in a rent/lease community).
- Property type restricted to Single Family Owner Occupied residence.
- All adults in the household intending to occupy the residence must co-apply and credit qualify for the mortgage loan. Exceptions are made only for child dependents who are verified to be full-time students.
- Borrowers may only need to contribute a minimum of 1 percent of the sales price
MSHDA – MI Next Home Program
MSHDA now offers a loan program designed specifically for the repeat homebuyer. The MI Next Home program allows the seasoned homebuyer to purchase a home with an FHA, RD or VA mortgage while foregoing some of the more restrictive aspects of the MI First Home program. Additionally, MI Next Home customers can still use our popular Down Payment Assistance with either the FHA or RD product.
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