Michigan State Housing Development Authority: Definition & Role

Instructor: Tara Schofield
The Michigan State Housing Development Authority provides struggling consumers with resources to purchase their own home. Learn about the services available and the benefits of using the authority's help.

What is the Michigan State Housing Development Authority?

Cindy has been down on her luck. She has had health problems that interfered with her ability to work. Add to that the cost for co-pays and prescriptions and Cindy has naturally struggled to buy a home of her own. She's working again but needs help to get on her feet.

In 1966, the Michigan State Housing Development Authority (MSHDA) was created to provide affordable housing, with financing assistance for economically challenged individuals and families. The goal was to establish thriving communities and support struggling homeowners while also diminishing homeless issues. State tax budgets are not used to finance homes. Rather, bonds and notes from private investors provide the funding to build and prepare housing for people who otherwise may not have the option to purchase a home. With the help of MSHDA, Cindy may be able to get her own place.

You are Cindy's agent and are hopeful she will meet the qualifications to get assistance from the MSHDA. By introducing her to MSHDA's services, you can help her gain independence and help her get back on her feet.

What is the Purpose of This Quasi-Agency?

The MSHDA program's primary purpose is to offer down payment assistance and first mortgages that give people support to overcome financial challenges and become homeowners. It has three main goals: help people build financial solvency, provide a roof for every homeless veteran, and improve the customer service.

You explain the qualifications for MSHDA's MI Home Loan program to Cindy to help determine if she is eligible. You share that she must complete a homebuyer course, have a credit score of 640 or higher, and have a registration form from each adult who will be living in the home, among other things. Since she is the only one who will live there, Cindy only needs to take the homebuyer class, provide proof of her credit score, and fill out the registration form for herself.

You have used this program successfully with other buyers you've represented. It's a valuable resource as the MSHDA lenders have closed more than 1,900 loans for clients who borrowed for down payments or who are financing the entire loan. This is what Cindy needs as she does not have a large down payment, nor does she have the resources for consumer loans.

Impact on Michigan Real Estate Sales

The MSHDA provides tremendous opportunities for first-time homeowners. The financing services and down payment assistance extends to people who owned a home previously but have not owned a home for the past three years. The MSHDA gives your clients the opportunity to purchase a home and have a pleasant place to live.

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