- In partnership with the FHLBank Indianapolis, MSHDA has rolled out a Rate Relief Mortage lowering the mortage interest rate by 1%
- The 1% decrease in mortages is expected to save families $100 per month
- In the attached story, we spoke with MSHDA and aspiring home buyers in my neighborhood about what this program is and how it will benefit first time home owners
(The following is a transcription of the full broadcast story)
The state of the housing market has been a big topic of conversation across my neighborhood and Tuesday the Michigan State Housing Development Authority introduced a new program that is aimed at assisting qualified applicants.
"It was $750 then it got increased so I said makes sense but unfortunately I just renewed my lease and now we're at about $814 so I don't know if we're going up another $100 next year but we'll see" said Kashif.
Kashif Stanbury is renting right now but one day he hopes to own a home of his own.
"Just enough for the wife and kids so 3 bedrooms something like that" he said.
But high mortgage interest rates are causing him and many of my other neighbors to run into some challenges.
Amy Hovey is the executive director of the Michigan State Housing Development Authority, or MSHDA. She says housing costs are being affected by supply and demand.
"We're about 140,000 housing units short in our state from where we need to be so due to that lack of supply the cost of our housing is very expensive" Hovey said.
As a way to provide some assistance, There's now the MSHDA Rate Relief Mortgage, a product that is designed to deliver savings to first time home buyers.
"Which will provide mortgages to Michigan families at 1% below the market rate"Hovey said.
The Rate Relief program is now available to first time home buyers who make 80% or below of the area median income and have a credit score of 640 or higher.
The discount will mean an average savings of $100 a month for home buyers.
Aspiring home owners in my neighborhood say every penny counts.
"If you can save money anywhere it helps" said Kashif.
First time home buyers who are interested can visit participating local mortgage lenders for more information.
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