Michigan grants available for first-time homebuyers, refinancing too

Dec 14, 2012

First time homebuyers may be eligible for up to $5,000 in state grants.  The grants are part of a settlement against the five largest mortgage servicers.

• Ally/GMAC
• Bank of America
 Citi
• JPMorgan Chase
• Wells Fargo

The attorneys general of all 50 states sued over foreclosure irregularities.  And Michigan’s share of that settlement is $97.2 million.

Mary Townley is with Michigan’s State Housing Development Authority.  She says this will help several thousand families. 

“The refinance assistance, we should be able to provide help to 10,000.  The down payment assistance, we’re estimating about 4,000 households that we should be able to provide assistance towards.”   

Townley says first time homebuyers may receive up to $5,000 for active duty military and veterans.  Non-military families are eligible for grants of up to $3,000. 

A refinance program provides up to $500 toward closing costs for single-family/one-unit, owner occupied residences.

She recommends checking with lenders to determine eligibility. “Immediately when they work with their lender, ask if they can participate in the program and get that process started with your lender.” 

More information is also available at the state's Housing Development Authority website.

- Chris Zollars, Michigan Radio Newsroom