New Mortgage Program Aims to Spur Home Sales

Posted at 12:02 PM, Feb 24, 2014
and last updated 2014-02-24 12:02:06-05

GRAND RAPIDS, Mich. (Feb 24, 2014)–It’s a new initiative to help spur home sales. Monday morning, realtors joined state and local officials to launch a Michigan’s first-ever MI Next Home program.

Repeat home-buyers, including singles, couples and families, are potentially eligible to receive up to $7,500 (or 4% of the purchase price) in down payment assistance from the Michigan State Housing Development Authority. It will be based on income limits that vary by county but generally range from  $70,000-plus for a household of one or two people to just under $100,000 for households of three people or more.

The initiative marks the first time MSHDA has gone beyond offering its popular MI First Home program for first-time buyers to include repeat purchasers of new or existing single-family homes, condominiums and manufactured housing. MSHDA estimates approximately one million state residents could qualify for MI Next Home down payment assistance.

National trends show more repeat buyers are looking to invest in new homes in 2014 because home values are rising after five years of declines and they are now more likely to get financing. Over the past year, Michigan has seen a 12.8% increase in home prices – the fifth-highest rate in the nation – and 27% more housing permits issued.

Among those in attendance were Grand Rapids Mayor George Heartwell, Michigan State Housing Development Authority (MSHDA) Executive Director Scott Woosley, state Sen. Mark Jansen (R-Grand Rapids), state Rep. Brandon Dillon (D-Grand Rapids), state Rep. Winnie Brinks (D-Grand Rapids), and representatives of the Michigan Association of REALTORS.