In Lansing, Michigan, there's a new opportunity for people who want to buy their first home. The state of Michigan has started a program that will give these first-time homebuyers up to $25,000 to help them pay for the initial cost of buying a home.
This is great news for 320 families who can now get support from the program called the First-Generation Down Payment Assistance.
The boss of the Michigan State Housing Development Authority (MSHDA), Amy Hovey, expressed that owning a home is a big step towards a better life and financial security.
However, she recognized that many people find it hard to afford their first home. With rising rent prices, Amy mentioned that this program is like offering a helping hand to families to secure a home that has the same cost every month. It's a chance for them to invest in their future, help their neighborhoods become stronger, and save money for their children and grandchildren.
According to the National Association of Realtors, fewer people are buying their first home now than ever before. Homes are expensive, there aren't enough available, and borrowing money is costly. Those who already own a home have it easier because they can use the value of their home to help them buy another one.
Here's how Michigan’s program works: It will loan money to those who qualify, and this money can be used for the down payment, closing costs, and other prepayments required for buying a house.
If someone wants to apply for this assistance, they need to:
- Be a first-generation homebuyer, meaning they or their parents haven't owned a home in the last three years.
- Have a household income within the limits set by the state.
- Have a credit score of at least 640.
- Buy a house that costs less than $224,500.
- Finish a class about buying a home that's taught by an approved agency.
This down payment loan must be used along with a loan called the MI Home Loan, among other requirements.
Lieutenant Governor Garlin Gilchrist said that this announcement means more families can afford the initial costs of buying a home, allowing them to save their money for other important things.
He also mentioned this is part of the state's ongoing effort to make housing more affordable and said the state has made great steps towards building or fixing up 115,000 homes by 2027.
For more details about how to get involved in the First-Generation Down Payment Assistance program, interested parties can visit michigan.gov/FirstGenDPA.
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