Buy a home using down payment assistance in Michigan with Freddie Mac’s BorrowSmart Program. Homebuyers below the Area Median Income (AMI) Limits can receive up to $2500 in down payment assistance.
The program is available only for purchase loans being used as a primary residence. Homebuyers may be eligible with a credit score of at least 620. Down payment requirements are as little as 3% down which can be covered with a gift from a family member or with the Freddie Mac BorrowSmart assistance.
How do I Qualify for Down Payment Assistance in Michigan?
To see if you are eligible for down payment assistance to buy a home in Michigan, simply apply online to confirm eligibility. Our licensed loan officers will help you review qualifications to see if you are eligible for the down payment grant through the BorrowSmart program.
Do I have to repay the Down Payment Assistance Grant?
While most mortgage down payment assistance programs require repayment, the Freddie Mac BorrowSmart program is a grant that does not require repayment. For eligible home buyer, this money is gifted to you at the loan closing with no additional liens against your home.
Can I Use the BorrowSmart Down Payment Assistance to pay my Closing Costs?
The BorrowSmart Proceeds can be used to cover both your down payment and closing costs to buy a home. Additionally, the seller can contribute up to 3% toward your pre-paids and closings costs for your home purchase.
How Long Does it Take to get Approved for Down Payment Assistance in Michigan?
Buying a home with down payment assistance is the same loan process as a standard conventional mortgage. On average, we close conventional mortgages in under 21 days.
To determine if you are qualified for the BorrowSmart DPA program a loan officer can review and determine eligibility in just minutes. Call 800-555-2098 and ask about BorrowSmart DPA Eligibility.
What are BorrowSmart Lending Guidelines?
BorrowSmart is a down payment Assistance Program which follows standard conventional mortgage guidelines set by Freddie Mac. An underwriter will the following to determine loan approval:
- Credit history
What Types of Properties Can I Buy with the BorrowerSmart DPA?
Property eligibility can be stick built homes, condos, or even manufactured homes. 2-4 unit Multifamily dwellings are even eligible as long as the borrower will use one of the units as their primary residence.
Eligible Property Types Include:
- Single Family Homes
- Planned Urban Developments (PUDs)
- Manufactured Homes (5% Down Payment Required)
How Do I Tell if I Make too Much Money to Qualify for DPA?
The Freddie Mac income and property eligibility tool will determine the Area Median Income for the Area. Simply follow the link, and type in the property address to confirm income limits: Home Possible Income & Property Eligibility Lookup Tool
- The borrowers on the loan must be under 80% of the AMI to receive up to $1250 at closing.
- Borrowers under 50% of the AMI may receive up to $2500 at closing.
Michigan BorrowSmart DPA Summary
Low to medium income borrowers may qualify for up to $2500 to buy a new primary residence that can be used for down payment assistance, closing costs and prepaid items such as taxes and insurance at closing. They must be under 80% of the AMI to receive up to $1250 or under 50% of the AMI to receive up to $2500.
Ready to buy a home? Reach out to the expert mortgage brokers at Riverbank by calling us at 800-555-2098 or requesting information below.