Michigan Gov. Rick Snyder announced a plan on Friday to boost the state’s housing market by providing a new tool to help first-time homebuyers finance their mortgages.
Under the plan, $30 million will be set-aside in a “hardest hit fund” to help lower interest rates for potential first-time homebuyers in a number of Michigan cities that were most affected by the economic downturn.
“While many communities have seen dramatic improvements in their real estate markets, this should provide a welcome incentive and help boost sales in areas of the state that need it the most to stimulate Michigan’s continued economic comeback,” Snyder said.
The program, which was designed by the Michigan State Housing Development Authority (MSHDA), allows first-time homebuyers who meet eligibility requirements to receive 3.125 percent interest rates without down payment assistance and 3.625 percent interest rates with down payment assistance.
“In the past few years, most of the state’s real estate market has had an incredible recovery,” MSHDA Executive Director Scott Woosley said. “This is an opportunity to target money in areas that are still experiencing significant sales declines and help drive the market turnaround for these communities.”
The program is funded through mortgage revenue bond sales and will be available to lenders on a first-come, first-served basis.
“We anticipate the program will help about 300 individuals or families across those eight cities realize the dream of home ownership,” MSHDA Homeownership Division Director Mary Townley said.