MSHDA vs BUYSMART from Hall Financial
Summary: Looking into down payment assistance programs to help fund your upcoming home purchase? There are a few great options on the market such as the Hall Financial BUYSMART program and the well-known MSHDA program. Read on to learn more.
The Hall Financial BUYSMART Program
The Hall Financial BUYSMART program provides borrowers with down payment assistance. Borrowers can receive up to $2,500 and do not have to repay the amount.
The application and approval process are not extensive compared to the well-known MSHDA program, and no additional liens are placed on the borrower’s mortgage. The process is much shorter with an industry leading 10-day closing period.
To qualify for the Hall Financial BUYSMART program, borrowers will need to meet the following requirements:
- Minimum credit score of 620.
- Must be applying for a conventional mortgage.
- Income caps depending on the buyer’s location.
- Complete a Homebuyer Education class.
Taking advantage of the Hall Financial BUYSMART program is a great way to help pay for your down payment. To qualify for the program, start by contacting Hall Financial. After contacting Hall Financial, we will verify your income, credit score, and debt-to-income ratio (DTI) to provide a pre-approval letter. The pre-approval letter is good for 90 days, in which the borrower can shop around for a home. Once the home offer is accepted, the down payment credit will be given at closing.
What is MSHDA?
MSHDA is another down payment assistance program provided by the Michigan State Housing Development Authority for Michigan home buyers. The program helps first-time home buyers on their first purchase and seasoned homeowners on a second home purchase. The goal behind the program is to help make homeownership in Michigan affordable and accessible to borrowers of all backgrounds.
Eligible borrowers can receive up to $7,500 in down payment assistance. The following requirements need to be met to be eligible.
- Property must be a single-family home and the primary residence.
- A minimum credit score of 640.
- Home purchase price maximum of $224,500.
- Income caps are placed and vary depending on location.
- Buyers need to contribute at least 1% of the sales price for their down payment.
- Complete a Homebuyer Education Class
- The goal behind the homebuyer education course is to help applicants understand their mortgage, the closing process, taxes, inspection process, and other home related topics to set them up for home buying and financial success.
The MSHDA down payment assistance program can take 45-days to complete and places a second lien on your mortgage. A second lien can cause complications or delays when refinancing your mortgage.
Down payment assistance programs are a great way to help fund your home. Contact your mortgage lender to find out qualification requirements.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.