How MSHDA Down Payment Help Works In Genesee County

Buying a home in Davison or greater Genesee County but worried about the down payment and closing costs? You are not alone. Many local buyers use Michigan State Housing Development Authority (MSHDA) programs to bridge the gap and get to the closing table with confidence. In this guide, you will learn how MSHDA down payment help works, who typically qualifies, the exact steps to take, and local tips to avoid common pitfalls. Let’s dive in.

MSHDA help, explained

MSHDA down payment assistance is designed to reduce the upfront cash you need to buy a home. The goal is to help qualified Michigan buyers access financing and cover part of the down payment or closing costs.

Assistance is usually delivered in one of three ways:

• Deferred second mortgage at 0 percent interest, recorded as a second lien and typically due when you sell, refinance, or pay off the first mortgage.
• Forgivable assistance, which may be forgiven over time based on program rules.
• Grants in limited cases.

You only receive this help when your primary mortgage is an approved MSHDA product and you close with an MSHDA-approved lender. The assistance is not a separate check you can use freely. It is tied to your first mortgage and follows both lender and MSHDA rules.

Eligibility in Genesee County

Program specifics change, and many limits depend on your household size and the county. Always confirm current Genesee County rules with an MSHDA-approved lender. Here are the common eligibility categories to review:

• Primary residence only. The home must be owner-occupied. Investment properties do not qualify.
• Property types. Single-family homes, many townhomes, and some condos may be eligible. Some condos require approval.
• Income and purchase price caps. MSHDA sets limits by county and household size. Genesee County has its own caps that you should confirm early.
• First-time buyer rules. Some programs require first-time buyer status, often defined as no ownership in the past three years. Other MSHDA loan products may allow repeat buyers.
• Credit and underwriting. You still need to meet lender standards for credit, debt-to-income, and documentation.
• MSHDA-approved lender. You must work with a participating lender to access assistance.
• Homebuyer education. Many borrowers must complete a HUD-approved education course or counseling before closing.

Step-by-step process

Here is the typical path a Davison or Genesee County buyer will follow when using MSHDA assistance:

1. Do preliminary research. Learn the basics of eligibility and ask about current Genesee County income and purchase price limits.
2. Get pre-approved with an MSHDA-approved lender. The lender will review your credit, income, and debt-to-income to match you with the right MSHDA product.
3. Complete homebuyer education. Plan to finish this before final approval so it does not delay your closing.
4. Shop for a property. Confirm the price, property type, and any condo approvals fit program guidelines.
5. Apply and go through underwriting. Submit income documents, asset statements, and your education certificate. Your lender will package the first mortgage and the MSHDA assistance together.
6. Close on the home. The down payment help is applied per program rules, often as a second mortgage or a forgivable form of assistance.
7. Know your after-closing obligations. Understand when a deferred second must be repaid, how a forgivable program works, and any owner-occupancy requirements.

Documents you will likely need

Lenders usually request the following:

• Photo ID and Social Security numbers
• Recent pay stubs, W-2s or 1099s, and tax returns if self-employed
• Bank statements and asset verification
• Purchase agreement and property details, including HOA or condo documents if applicable
• Homebuyer education certificate when required

What the funds can cover

In Genesee County, buyers commonly use MSHDA assistance to:

• Cover the required down payment to meet loan program minimums
• Pay part or all of closing costs, including fees and prepaid items
• Increase the down payment to help reduce mortgage insurance where possible
• Make the purchase feasible for buyers with modest savings in a lower-priced local market

Local tips for Davison and Genesee

• Affordability fit. Because local prices are often more modest than some higher-cost Michigan counties, a fixed amount of assistance may stretch further here.
• Purchase price alignment. Be sure the home you want fits Genesee County’s purchase price caps. Confirm limits early to avoid surprises later.
• Typical buyer profiles. First-time and lower to moderate income buyers often use MSHDA. Some repeat buyers may qualify for certain MSHDA mortgages, but check program details.
• Property type checks. Condos can require approvals. Ask your lender and agent to verify eligibility before you write an offer.

Pitfalls to avoid

• Assuming assistance covers everything. DPA may not cover lender-required reserves, repairs noted by the appraisal, or certain excluded fees.
• Skipping homebuyer education. If it is required and not completed, your approval can be delayed or denied.
• Overlooking condo approval. An unapproved condominium can derail a transaction late in the process.
• Mixing incompatible loan types. Not all assistance works with all first mortgages. Confirm the pairing with your lender upfront.

Smart prep checklist

• Confirm Genesee County income and purchase price limits with an MSHDA-approved lender.
• Ask for a written summary of how the assistance works, including when it must be repaid.
• Complete your homebuyer education early and keep the certificate handy.
• Verify property eligibility, including condo approval status.
• Keep copies of disclosures and key documents organized for underwriting.

Next steps

If MSHDA down payment help seems like a fit, start by speaking with an MSHDA-approved lender to confirm your eligibility and the current limits for Genesee County. Then partner with a local agent who understands how to align property selection, offer terms, and timelines with program rules.

You deserve a smooth, informed path to homeownership. For local guidance tailored to Davison, Grand Blanc, and all of Genesee County, reach out to Jackie Stratton. With community roots, proven production, and a client-first approach, Jackie will help you navigate the details and move forward with confidence.

FAQs

Do I need to be a first-time buyer for MSHDA in Genesee County?

• Some programs require first-time status, defined as no ownership in the past three years, while other MSHDA options may allow repeat buyers. Confirm the rules with an MSHDA-approved lender.

Will an MSHDA deferred second change my monthly payment?

• A 0 percent deferred second typically does not add a monthly payment, but it is a lien that becomes due when you sell, refinance, or pay off the first mortgage.

Can I pair MSHDA assistance with FHA or conventional loans?

• Many buyers can combine MSHDA assistance with FHA, USDA, or conventional loans, but approved combinations vary by program and lender. Verify your specific pairing before you shop.

What happens if I sell or refinance soon after closing?

• Deferred seconds are usually due at sale or refinance. Forgivable assistance may reduce or be forgiven over time. Review your program documents for exact terms.

How do I find current income and price limits for Genesee County?

• Ask an MSHDA-approved lender for the latest county-specific limits, since caps and eligibility change and depend on household size.