Mshda Lowers Interest Rate For First-time Homebuyers

$8,000 Homebuyer Tax Credit Extended to April 2010

Michigan State Housing Development Authority (MSHDA) mortgage interest rates are dropping nearly a full point in an effort to stimulate the housing market for low and moderate income homebuyers, MSHDA Executive Director Keith Molin announced today. The significant drop to 5.375 percent for a 30-year fixed rate MSHDA mortgage and the extension of the $8,000 first-time homebuyer tax credit to April 30, 2010 makes owning a home an achievable reality for many more people throughout the state.

Additionally, for those struggling to stay in their current homes, MSHDA provides guidance to homeowners by referring them to an expanded statewide counseling network for assistance in working with their mortgage companies.

'We want to help homeowners stay in their homes, and give potential buyers the opportunity to purchase an affordable home,' Molin said. 'With these programs in place, we can help stabilize and protect neighborhoods throughout Michigan.'

MSHDA low-interest mortgage loans are available through participating lenders across the state and a list of homeownership counselors is available on the MSHDA Web site at www.michigan.gov/mshda. Up to $7,500 is available through MSHDA's Down Payment Assistance program and can be used in conjunction with the $8,000 federal homebuyer tax credit.

To take advantage of the tax credit, borrowers must:

-- Enter into purchase contracts by April 30, 2010 and close by June 30,

2010.

-- Meet income and sales price limits.

For more details on the homebuyer tax credit, go to www.IRS.gov.

Another piece of the new legislation provides a tax credit of up to $6,500 for existing homeowners who have lived in their home for at least five consecutive years out of the last eight, and who wish to purchase a different home as their primary residence.

For more information on this and other MSHDA programs, visit the Web site at www.michigan.gov/mshda.

The Michigan State Housing Development Authority is dedicated to building a thriving and vibrant future for Michigan. MSHDA provides tools and resources to improve people's lives through programs across the state. These programs assist with housing, build strong neighborhoods, and help create places where people want to live and work. MSHDA's programs work in four areas: affordable rental housing; supporting homeownership; ending homelessness; and creating vibrant cites and neighborhoods.*

*MSHDA's loan and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs.