A few months ago, I blogged about the MSHDA down payment assistance program for first time home buyers. It is a wonderful program for people living in the great state of Michigan which offers up to $7500 to borrowers to help them purchase a home. The $7500 can be used as a down payment, and sits as a second mortgage with no required payments or interest.

This program had two specific qualifying criteria: you must have been a first time home buyer, and it was limited to specific areas. And until yesterday, September 16, these were the only two qualifiers. But now, there is also a credit piece involved. Any borrowers who hope to qualify for this program must have at least a 640 credit score.

This requirement will muddy the waters slightly on this program. Contacting a qualified loan officer will still help you to determine which areas you should be looking in for your new home. And the factors required to determine first time home buyer status are still the same. But the credit piece can be challenging for those with a credit score below 640.

For this reason, I recommend anyone who is serious about this program contact a qualified loan officer at least a few months prior to applying for a mortgage. This will give the professional time to analyze your credit and help you to get over that 640 mark.

If you have any questions about the MSHDA down payment assistance program and these new changes, please contact me. And if you have anything else to add about the changes, please leave a comment.