1.  What are the requirements for my institution to become a MSHDA approved lender?

To become a MSHDA approved lender, your institution must be one of the following:

• A state-chartered bank or national bank
• A federally chartered bank or national bank
• A state or federally chartered credit union
• Licensed or registered under the Michigan Mortgage Lenders, and Servicers Licensing Act (unless exempt).

Your institution must also have one of the following designations:

• An FHA Direct Endorsement approved mortgage lending institution
• An FNMA or FHLMC approved seller/servicer
• Approved by the Federal Home Loan Bank for sale of 1 st residential mortgage loans
• A VA-Automatic approved mortgagee
• A RHS (formerly FmHA) approved mortgagee

In addition, your institution must meet ALL of the following criteria:

• Be licensed to SERVICE loans in the State of Michigan
• Have a net worth of at least $250,000
• Have Errors and Omissions insurance coverage of at least $300,000
• Have Fidelity Bond insurance coverage of at least $300,000

If your company meets all of the above requirements, MSHDA welcomes your application to participate in our Homeownership laon program. Please complete the MSHDA Lender Application, review the MSHDA Lender Agreement, and return to Kathy Koryba at MSHDA's Division of Homeownership, 735 East Michigan Avenue, P.O. Box 30044, Lansing, MI 48909.

•  Low interest rates mean more purchasing power for the buyer.

•  Potential down payment assistance to help you qualify more buyers and increase their purchasing power.

•  Grateful buyers translate into more referrals and repeat business.

•  MSHDA financing can be used easily with most loan types-conventional, FHA, VA, or RD.

•  The loan commitment is valid 90 days for an existing home and 180 days for new construction.

•  Lenders can enhance their CRA performance.

•  Participating lenders receive free MSHDA marketing materials and a preferred lender listing on MSHDA's website.