Michigan Launches a $25,000 Help for First-Time Homebuyers

In Lansing, Michigan, a new offer is out for people buying their first home. Michigan is giving away $25,000 to help with the down payment, which is the money you need to pay upfront when you buy a house.

The team in charge, called the Michigan State Housing Development Authority (MSHDA), started the "First-Generation Down Payment Assistance" on February 18th. They have $8 million set aside for this project, which they think will help about 320 families in Michigan.

Amy Hovey, who runs MSHDA, said owning a home is a big step to building wealth and improving your life, but for many people who have never owned a home before, it's really hard because of the costs. 

She mentioned that with rent prices getting really high, this new program is great as it helps families actually own their homes. This way, they have a stable monthly cost and it's an investment in their own future.

Last year, it became extra tough for first-time homebuyers because of high prices, not enough homes for sale, and the cost of borrowing money. Meanwhile, people who already have homes find it easier to buy again because they can use the value of their current home.

There's an expert, Jessica Lautz, who works with house sellers, and she says there are two types of people in the housing market: first-time buyers who are having trouble and people who already own homes and can make cash deals.

For Michigan's program, people who are eligible can get up to a $25,000 loan to help not just with the down payment but also other costs like closing fees.
 

Here's who can apply:

 

1. You must be a first-time homebuyer, which means you can't have owned a home in the last three years, and you have to live in the home you're buying.
2. Your household income has to be under a certain amount, according to the state's rules.
3. You have to have a credit score of at least 640.
4. The house you're buying has to cost less than $224,500.
5. Neither of your parents can have owned a home in the last three years.
6. You have to take a class about buying homes that's approved by the U.S. Housing and Urban Development.
7. This down payment help should also be used with a MI Home Loan and meet a few other conditions.

Lt. Gov. Garlin Gilchrist said that this help is meant to let families keep more money for themselves and that it's also a part of bigger efforts to make housing more affordable in Michigan. MSHDA has done really well in the last two years with this plan.

Besides this $25,000 program, Michigan has other helps for homebuyers, like a $10,000 down payment program and a loan program for first-timers. And they've just reached the halfway mark on a promise to create or fix up 115,000 places to live by 2027.

You can find out more about getting this down payment help at michigan.gov/FirstGenDPA.

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Find out if you're eligible for housing support here!