GRAND RAPIDS, Mich. — Buying a first home can be an important milestone, yet challenging, especially for those from families who have always rented. To address this, the Michigan State Housing Development Authority (MSHDA) has introduced a new program aimed at assisting first-generation homebuyers.
The program, launched on Tuesday, will provide eligible first-generation homebuyers with $25,000 down payment deferred loans to help cover upfront home buying costs. The state aims to break the cycle of renting for families through this initiative.
"We feel really passionately that generational wealth is often started with getting into homeownership,” said Scott West, a realtor excited about the program. West, the broker/owner of Greensquare Properties, noted that while there have been various first-time homebuyer programs, he has never seen one dedicated solely to first-generational homebuyers.
West emphasized the high demand for the program and urged potential buyers to act quickly. "The state's got $8 million on the table, which is a huge amount of money, but that money is going to go really fast,” he said.
MSHDA Director of Home Ownership Tonya Coon highlighted the urgency of the program amid rising home prices, interest rates and the difficulty in securing financing. “Saving for a down payment continues to prevent many individuals, especially first-generation homebuyers, from achieving homeownership,” Coon said.
“The $25,000 is not a gift but an interest-free, no-payment loan that doesn’t need to be repaid until your house sells or is refinanced,” Coon explained.
West expressed optimism about the program's impact on the local community. “If we could put 320 families locally in the state of Michigan into homes and start them on that path so that their kids and their kids can start thinking homeownership is possible. I think it's an incredibly exciting opportunity,” said West.
Applicants must to meet these conditions for eligibility:
- No homes owned in the past three years.
- Income is below MSHDA limits.
- Have a credit score of at least 640.
- Desired property must not exceed $224,500 in sale price.
- Parents must not have owned homes in the past three years.
- The program must be utilized in tandem with MI Home Loan.
- Must finish a homebuyer education course approved by a qualified housing counseling agency.
- Must meet all other qualifications to participate in the program.
For more information on this program click here.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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