Michigan MI Home Loan Program Guide

Guide to the Michigan MI Home Loan Program

The Michigan MI Home Loan Program provides affordable mortgage options to first-time homebuyers and eligible borrowers in Michigan. The program offers competitive interest rates and down payment assistance to help make homeownership more accessible. Whether you're purchasing your first home or looking to buy in a qualified area, the MI Home Loan Program is designed to make the homebuying process easier. Here’s a comprehensive guide to understanding the program, its benefits, and the steps to apply in 2025.

1. Program Overview:

• Purpose: The MI Home Loan Program is aimed at helping first-time homebuyers and qualified buyers with affordable financing options. It provides competitive interest rates, down payment assistance, and other resources to make homeownership attainable for more individuals and families in Michigan.
• Loan Terms: The program offers fixed-rate mortgages with terms typically up to 30 years. The low-interest rates available through the MI Home Loan Program help to reduce monthly payments, making homeownership more affordable in the long term.
• Down Payment Assistance: In addition to affordable mortgage rates, eligible borrowers can receive up to $7,500 in down payment assistance. This assistance helps reduce the amount of money needed for the down payment, easing the financial burden of buying a home.

2. Eligibility Requirements for 2025:

To qualify for the Michigan MI Home Loan Program, applicants must meet the following criteria:

• Income Limits: The program is available to homebuyers with moderate incomes. Income limits vary depending on household size and the location of the home. These limits are updated annually to reflect changes in the housing market and cost of living.
• First-Time Homebuyer: The program is designed for first-time homebuyers, although exceptions are made for those purchasing in certain areas or for qualifying veterans. A first-time homebuyer is generally someone who has not owned a home in the last three years.
• Credit Score: A minimum credit score of 640 is required for most applicants. Lenders may also review other factors, such as your debt-to-income ratio, when considering your application.
• Property Requirements: The property must be located in Michigan and serve as your primary residence. The home must meet specific price limits to ensure affordability for qualified buyers.
• Homebuyer Education: All applicants must complete a homebuyer education course before applying. This course provides valuable information on budgeting, mortgage management, and other aspects of homeownership.

3. How to Apply:

To apply for the Michigan MI Home Loan Program, follow these simple steps:

• Find a Participating Lender: The MI Home Loan Program works through a network of approved lenders. You will need to contact one of these lenders to begin your application process. The lender will help you determine your eligibility, gather the necessary documentation, and submit your application.
• Required Documentation: Be prepared to provide documents such as proof of income, tax returns, credit history, and a certificate from the homebuyer education course.
• Submit Your Application: After you’ve gathered all the necessary documents, submit your application to the participating lender. The lender will review your application and notify you of your eligibility for the MI Home Loan Program.

4. Homebuyer Education Course:

• Mandatory Requirement: A homebuyer education course is required for all applicants. This course provides essential knowledge about the homebuying process, managing your mortgage, and long-term financial planning as a homeowner.
• Course Options: The course is available both online and in-person. After completing the course, you will receive a certificate, which is needed to proceed with your loan application.

5. Down Payment Assistance:

• Assistance Amount: The program provides up to $7,500 in down payment assistance. This assistance can be used to help cover the initial costs of purchasing a home, including down payments and closing costs.
• Deferred Loan Terms: The down payment assistance is provided as a second mortgage, which is typically deferred. This means that no monthly payments are required, and the loan is repaid when the home is sold, refinanced, or paid off in full.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your lender will guide you through the next steps, including signing the loan documents and preparing for closing.
• Closing Costs: While the MI Home Loan Program covers part of the down payment, you may still be responsible for certain closing costs. Your lender will provide a detailed breakdown of these fees.

Our team of expert loan officers is here to guide you through every step of the process. From application to closing, we will ensure you receive all the benefits of the MI Home Loan Program and help you achieve your goal of homeownership in Michigan.