I am so excited to report that MSHDA has rolled out a new program called the MSHDA/NSP 80/20 loan. Features of the program include:

• 80% first mortgage, no PMI
• 2nd mortgage up to $25,000 with repairs, 10K if no repairs
• Only 1% down requirement from buyer!
• Property type must be bank owned/foreclosure.
• Repairs allowed- repairs can be minor or more significant- examples of repairs that will work include but are not limited to- Appliances (except washers and dryers), roofs, furnaces, kitchen or bath remodel, carpet, deferred maintenance, air conditioning, siding, handicapped accessible ramps, alternative energy
• Max CLTV is 103%
• Seller contribution up to 6% allowed
• A HQS Quality Inspection is required- i.e.- an inspector must determine what must be repaired and estimate the cost
• Repair funds are held in escrow at MSHDA
• Lenient income guidelines- up to 120% of Area Median Income- i.e.- family of 4 can typically make up to $73,700 in outer county areas in Kent County or higher in targeted areas (like GR)
• Manual underwrite, no requirement of computer approval
• No minimum credit score technically, however, 620 is preferred. Lower than 620 requires good compensating factors.
• 30/41 debt to income ratio guidelines, 45 max on exception basis
• Two months reserves required

The target areas are broad, but the federal government requirements state that the area must have a foreclosure risk of 6 or higher. The target area maps are a bit confusing. I am happy to look up an address to determine if it qualifies. Many townships, cities, and entire counties qualify. Please call me at (616) 719-4513 directly for more information or to walk through a scenario!