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Michigan State Housing Development Authority (MSHDA) offers an exciting 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 reduced rates. |
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| PROGRAM
HIGHLIGHTS |
- A conventional loan program at reduced interest rates for college graduates receiving a degree within three years prior to loan application.
- Loan to value ratio up to
80 percent.
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| 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.
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| ELIGIBLE
PROPERTY LOCATIONS |
- To qualify, properties must
be located within the city limits of the eight "Cities of
Promise."
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- Benton Harbor
- Hamtramck
- Pontiac
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- Detroit
- Highland Park
- Saginaw
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| ELIGIBLE
PROPERTIES |
- New single family homes.
- Existing single family homes or condominiums.
- New condominiums must be approved by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), or the Federal Housing Administration (FHA). Non warrantable condominiums are not eligible for financing.
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| FEDERAL RECAPTURE TAX |
Because MSHDA loans are funded through the sale of tax-exempt bonds, which benefits borrowers by lowering the loan interest rate, some borrowers are required to repay the government a portion of their gain upon the sale of their home.
MSHDA recognized that this may be a concern for individuals, so the Recapture Tax Reimbursement Program was created. In the event a borrower is required to pay a recapture tax, MSHDA will reimburse borrowers for any recapture tax paid by the borrower to the IRS. |