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Graduate Purchase Assistance

The Michigan State Housing Development Authority (MSHDA) is pleased to announce an exciting new loan program for college graduates. If you have earned an associate's, bachelor's, master's, or doctoral degree within the last three years, you may be eligible to purchase a home at greatly reduced rates!
 
PROGRAM HIGHLIGHTS
  • Reduced interest rate conventional loan program (approximately two percent below market rate) for college graduates receiving a degree within three years prior to loan application.
  • Available for conventional 95 percent or 97 percent.
  • Zero interest Down Payment Assistance available to qualifed borrowers.
 
BORROWER GUIDELINES
  • Families must meet income limits to apply.
  • Properties must meet sales price limits to be eligible for financing.
  • Generally acceptable credit and ability to repay the loan.
  • Occupy the home as your principal residence.
ELIGIBLE PROPERTY LOCATIONS
  • To qualify, properties must be located within the city limits of the eight "Cities of Promise."
  • Benton Harbor
  • Hamtramck
  • Pontiac
  • Detroit
  • Highland Park
  • Saginaw
  • Flint
  • Muskegon Heights
ELIGIBLE PROPERTIES
  • New single family homes or existing single family homes or condominiums.
  • New condominiums must be approved by FNMA (Fannie Mae), FHLMC (Freddie Mac), MSHDA or an insurer (FHA, VA, RD).
  • New and existing manufactured homes are eligible ONLY if maximum Loan To Value Ratio does not exceed 95 percent.
  • Co-ops are not eligible for financing by MSHDA.
HOMEBUYER EDUCATION
  • Borrowers are required to receive homebuyer education counseling for any loan that has an LTV of 97 percent or greater.
  • The homeownership counselor must be a MSHDA LINKS to Homeownership Certified Counselor.
  • MSHDA's approved housing counselors are located throughout the State of Michigan. Visit our counselor locator to find a counseling agency near you.
MORTGAGE INSURANCE
  • MSHDA offers special reduced rate mortgage insurance premiums by partnering with MGIC and Genworth.
  • Job loss protection coverage is available at no additional cost to borrowers.
  • The reduced mortgage insurance premiums and job loss protection are only available on loans funded by the Michigan State Housing Development Authority that meet MGIC and Genworth eligibility criteria, along with meeting the guidelines for MSHDA loans.
FEDERAL RECAPTURE TAX
  • If property is sold within nine (9) years from the date of loan closing, the borrower may owe a recapture tax. 
  • This tax is based on the household income and family size during the year of resale, and on the length of time the borrower occupied the property.
  • Please view MSHDA's Reality of Recapture to learn more about the possibility of Recapture Tax.
 
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Related Content
 •  Down Payment Assistance for Persons With Disabilities
 •  Employer Assisted Housing
 •  Targeted Areas
 •  Participating Lenders
 •  Interest Rates
 •  Homeownership Loan Products
 •  Buying Your Home

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