Monday, November 05, 2018

There's help to buy a home in Detroit

Homes in Warrendale during the winder - Photo by Frank Nemecek
Anyone who is looking to buy a home in the Warrendale neighborhood - or many of the other outlying neighborhoods in Detroit - can get some great incentives thanks to the Step Forward Program from the Michigan State Housing Authority. For starters, MSHDA is offering $15,000 to eligible homebuyers to cover their downpayment, closing costs, and other prepaid expenses.

While $15,000 to put towards the purchase of a new home in Detroit is great in and of itself, MSHDA and their Step Forward Program are offering even more for qualified homebuyers. They are also working with a coalition of more than 45 lenders to offer a 0% interest rate as well as no monthly payments for eligible homebuyers.

The Michigan State Housing Authority will even forgive 20% of the home loan per year. This means that 100% of the loan amount will be forgiven within five years. Eligible homebuyers essentially get a free house in the Warrendale neighborhood or elsewhere in Detroit, with no monthly payments along the way, provided that they live in their home for at least five years.

There are, of course, several conditions are requirements for homebuyers to gain access to this program. For starters, there is a maximum income limit that ranges from $85,080 to $99,260 depending upon the size of one's household as well as an asset limit of $10,000 excluding retirement savings. Anyone who makes more than that amount or who has assets worth more than $10,000 is not eligible for this program.

The purchase price of the home may not exceed $224,500, which means that any home in the Warrendale neighborhood easily qualifies. Homebuyers will also be required to complete a homebuyer education workshop.

The home that one buys must be in the Warrendale neighborhood or one of the other qualifying neighborhoods in Detroit. (Although, let's face it - buying in Warrendale really is the smartest bet.) The Michigan State Housing Development Authority also requires that homebuyers use an MSDA MI Home Loan for this purchase.

Finally, in order to qualify, homebuyers must have a minimum credit score of 640 (or 660, if buying a manufactured home). If anyone is uncertain about their credit score then I recommend checking out Credit Karma or WalletHub. Consumers can use those sites to get their score for free and do so without a credit card. They also offer a variety of tips on how to improve one's credit score.

There will be a housing and resource fair this Wednesday, November 7 from 4 - 7 pm at the Northwest Campus of Wayne County Community College (8200 W. Outer Dr.) in Detroit. Additional details can be found on this flyer from the Michigan State House Authority.

$15,000 to purchase a home in Detroit, as well as all of the other benefits of the Step Forward Program, are your Tip of the Week for November 5.

These tips are brought to you by the Warrendale (Detroit) Blog as part of our semi-regular Tip of the Week feature. Please check back every Monday for more advice on your home, money, and life.

Also, be sure to follow the author, Frank Nemecek, on Twitter and Instagram as @fnemecek for more great information.
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