Are there any first time homebuyer grants available to help individuals buy a home? I would like to buy a home soon but I don't think I can qualify for a loan without some type of help or grant from the government.
— E.B., North Branch
E.B, You are in luck. Right now there is a grant program provided by the Michigan State Housing Development Authority (MSHDA). There are many restrictions to the program but it could be a real benefit to you. The first restriction is the grant program only covers targeted areas. Currently this is the Cramton Neighborhood in downtown Lapeer. The home you purchase must be in this area to qualify for the grant. This area covers about 15 square blocks east of M-24 and south of M-21. There are maps available showing the detailed area. The second restriction is an income minimum and maximum depending on your family size. For example, a family of three has to have at least $25,160 but no more than $50,350 in yearly income. It goes up or down depending on the size of your family. The grant program does not fully fund your purchase as you would be required to obtain your own mortgage to purchase the home. The grant could be used as a down payment to help you qualify though. The grant you receive is a 0% interest loan that you do not have to pay back until the home either sells or you no longer reside in the home. This is a great way for you to borrow the money to put down on your first home with zero out of pocket expense and with no monthly payments to make other than your first mortgage. This grant money is provided on a first come first serve basis. Funds are limited so this program will not be around for long. You need to meet with a Realtor and Lender who can assist you in this program. This program is also available for those already living in the Cramton Neighborhood to assist them in making home improvements to their residence.
Alex Lengemann is a licensed Real Estate Broker who operates RealtyVolution.com, a local real estate company. You can Ask Alex your real estate or mortgage questions by phone 810-664-1819 or by email Alex@RealtyVolution.com.