Governor Granholm today announced the restoration of a federal tax credit program along with new programs that will give Michigan residents an unprecedented opportunity to purchase affordable homes through the Michigan State Housing Development Authority (MSHDA). “These innovative programs will help Michigan citizens achieve the American Dream of home ownership,” Granholm said.
If you’re on the market for a new Ann Arbor home or downtown Ann Arbor condominium, this summer is the perfect time to find an Ann Arbor realtor and talk with him or her about what you’re looking for in a home. Browse listings online to narrow down the houses or condos you’re interested in, then tour the homes with your realtor. With the new funding assistance programs, now is a great time to purchase.
The first program offers new enhancements to MSHDA’s existing Down Payment Assistance Program (DPA). Income limits have been increased to parallel single-family income limits, improving a potential homebuyer’s ability to qualify for DPA loans. Homebuyers may also take advantage of the first-time homebuyer $8,000 federal tax credit provided for under the American Recovery and Reinvestment Act of 2009. MSHDA recently issued bonds totaling more than $300 million that will generate the money to fund the DPA and other single-family mortgage loan programs. Interest rates for a 30-year, fixed-rate mortgage is 6.25 percent.
The second program is the federal Michigan Mortgage Credit Certificate (MCC) program that has been resurrected following a three-year hiatus and allows a tax credit of 20 percent of the interest a borrower pays during the term of a home mortgage.
Two other programs have also been created that have allocated $10 million dollars to assist new buyers purchasing foreclosed or abandoned homes. The programs are temporary while funding is available.
According to MSHDA Executive Director Keith Molin, said, “There are people out there who can and want to buy a home. We are just being responsive to the needs expressed by the people of Michigan and providing the necessary tools to make it happen.”
Full details of these programs are available on MSHDA’s Web site: www.michigan.gov/mshda. Once at the site click on Homeownership on the left hand side of the home page.