Down Payment Assistance
DOWN PAYMENT ASSISTANCE
*This only covers the basic requirements. All loans are subject to approval by the Road to Home Program in accordance with the program’s full guidelines.
- Households must qualify as a first time homebuyer.
- The household must complete Road to Home’s Homebuyers Education Course before entering into a buy/sell agreement.
- Household must contribute 1% of 1st loan amount.
- Households must be income-eligible; maximum income is determined by geographical area and family size. See attached for specifics.
- Maximum purchase price of the home is set by MDOC guidelines.
- The home must be the household’s primary residence.
- Sum of all financing must be less than 105% of the home’s appraised value.
- Interest rate on the financing you choose may not exceed the current MBOH rate. The rate must be fixed.
- Your front-end ratio must be between 28% and 32%. Back-end ratio may not exceed 42%.
Real Estate Eligibility:
- Condos, town-homes, single-family detached homes, and manufactured homes (on permanent foundations) may all be eligible properties.
- The home must be either vacant or owner-occupied at the time the buy-sell is executed. Any unit with current tenants, regardless of the terms of their lease, is not eligible.
- All homes must have a home inspection.