Housing Education Programs
Are you having difficulty keeping up with your mortgage payments? Do you have an involuntary hardship that caused you to get into arrears on your real estate taxes? Do you have an existing MSHDA mortgage and are uncertain about your current loan? There’s still hope for you.
Michigan State Housing Development Authority (MSHDA) Step Forward Michigan forgivable programs can help you with your financial difficulties, overdue payments and taxes.
The Hardest Hit Fund loan program was established in 2010 by the U.S Department of the Treasury to aid families in states that were hit hard by the economic and housing market slump. Moreover, the Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) was founded by the Michigan State Housing Development Authority (MSHDA) to supervise the allocation of the Hardest Hit Funds® in Michigan.
The Step Forward Michigan program is designed to aid Michigan homeowners stay in their own home. An approved homeowner will be asked to sign a forgivable loan note and mortgage lien for the requested amount of assistance granted.
The loan is provided at a 0% interest rate, no monthly payments required and forgiven 20% annually provided this home remains the primary residence. Hardest Hit Funds are paid directly to the mortgage lender, condominium association, and/or county treasurer for application regarding the outstanding amount.
Homeowners may be eligible to receive assistance on their primary residence from one of Michigan’s three programs:
Unemployed Mortgage Subsidy Program
This financial aid provides assistance to underemployed or unemployed homeowners that meet one of the following criteria:
- Homeowner has been receiving unemployment benefits from Michigan’s Unemployment Insurance Agency (UIA) in the last 12 months.
- Documented a 20% or greater cutback in gross household income.
This particular program may provide up to a 50% monthly subsidy toward the homeowner’s 1st lien mortgage (up to $1,000 per month) for 12 months. The homeowner must have income necessary to sustain the unsubsidized portion of the monthly mortgage payment.
This program may also contribute funds toward reinstatement of an overdue 1st lien mortgage, condo association fees, and/or property taxes if the homeowner can sustain their future monthly payments.
Loan Rescue Program
This financial aid provides assistance to homeowners in reinstating their outstanding mortgage, condo association fees, and/or property taxes that meet one of the following criteria:
- Homeowner had an involuntary qualifying hardship that caused the delinquency
- The homeowner has enough income necessary to sustain future payments
This program may be used to reinstate the outstanding balance(s) if an eligible hardship occurred such as a job loss, medical condition, reduction of gross income, death, divorce, or one time critical housing expense that led to the delinquency.
Modification Plan Program
This financial aid provides assistance with their 1st lien mortgage, to homeowners who meet one of the following criteria:
- The homeowner had an involuntary qualifying hardship that caused the 1st lien mortgage payment to become unsustainable.
- Have a severe negative equity position of greater than 115% loan to value.
This program might contribute toward a mortgage delinquency and/or principal curtailment, if the lender agrees to establish a lower sustainable mortgage payment by modifying or re-amortizing the loan.
Housing Education, Classes and Services
MSHDA’s statewide network of Housing Educators can help if the homeowner is in a financial crisis, needs assistance in finding local resources or even when facing foreclosure.
Homeownership education classes, services and workshops are available through MSHDA’s Housing Education program for individuals. This ensures a homebuyer will have a better understanding of their mortgage loan, closing process, budgeting, recapture taxes, home maintenance and avoiding predatory lending and foreclosure.
Here are the Additional Services offered:
- Pre-Purchase Education
- Financial Capabilities Education
- Pre-Purchase Home Inspection Funds
- Foreclosure Services
- Loss Mitigation Assistance
- Transition, Relocation or Rental Guidance
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Do you have general real estate requests or need a Realtor to represent you in South Lyon, Novi, Farmington Hills, Livonia, Northville, Plymouth, or in any other surrounding Oakland County area? Feel free to contact me.