Are Mshda Loans Forgivable?

We're happy to introduce the program because, unlike the current MSHDA down payment assistance program, it's a forgivable loan. In five years, if the borrower still occupies the home as their primary residence, the loan is completely forgiven.

How do MSHDA loans work?

One of the ways it does this is through the MSHDA down payment assistance program, which is essentially a separate loan – second to a borrower's first mortgage – that provides up to $7,500 in down payment assistance. The program is available to first-time homebuyers statewide and repeat homebuyers in targeted areas.

What kind of loan is MSHDA?

The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.