Benefits of Down Payment Assistance

When you want to purchase a home, but do not have enough money to cover a down payment, that can act as an obstacle that holds you back from taking the next steps toward becoming a homeowner. One tool that may help is down payment assistance, like that offered through the Michigan State Housing Development Authority (MSHDA).

Down payment assistance has multiple benefits for prospective homebuyers. Here are some of the ways that down payment assistance can make it easier and more affordable to buy a home.

1. Buy a home now instead of waiting. For one thing, down payment assistance can make the difference for some borrowers between buying a home now, and waiting months or years to purchase a home. Being able to purchase a home today could mean getting to own your dream home instead of losing it to another buyer. It means building equity and starting to experience gains from your home’s increasing value. Plus, you get to start living the life you truly want.
2. Qualify for a lower interest rate. One of the factors that impacts the rates you qualify for when you apply for a mortgage is how large a down payment you can make. The more you can put down, the less risk you pose to the lender. This can result in qualifying for a lower interest rate than you would with a lower down payment, if all other factors are equal. Down payment assistance thus may help you qualify for a more affordable rate, since you are able to put more down on the mortgage.
3. Avoid mortgage insurance. Another way that a low down payment can cost you when purchasing a home is resulting in you needing to pay for mortgage insurance. But if you can put down 20% when you buy a home, you can escape from the mortgage insurance requirement. If down payment assistance makes the difference in you having to pay for mortgage insurance or not, it can be well worth it to consider, even if you could afford a smaller down payment on your own.

Buy a Home with Down Payment Assistance

MMS Mortgage Services is based in Farmington Hills, MI. We have experience helping homebuyers in Michigan to apply for the down payment assistance program offered by the MSHDA.

Depending on the zip code where you are buying a home, the MSHDA down payment assistance program can offer up to $7,500 or up to $10,000 in assistance. You can view the full features and requirements for this down payment assistance program here.

If you are buying a home in MI, we can walk you through the application process for MSHDA down payment assistance. If you are shopping for a home in another state, we can help you look into programs available in your state.

To begin, please call (248) 788-0800 to schedule your consultation. We can help you buy a home in Farmington Hills, throughout Michigan, and in 14 other states.