With some Michigan homeowners on the brink of losing their homes due to financial hardships, the U.S. Department of the Treasury created the Hardest Hit Fund to address families’ hit hard by the economic and housing market recession.
Michigan received $498.6 million in Emergency Economic Stabilization or Troubled Asset Relief Program funds to operate the program. Michigan State Housing Development Authority (MSHDA) created the Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) to manage the Hardest Hit Funds in Michigan. Step Forward Michigan is the umbrella of four programs helping Michigan homeowners survive a financial hardship. They can apply online at www.stepforwardmichigan.org.
Mary Adams of MPH Mortgage in Ann Arbor said MSHDA offers homeowners financial relief in many forms, MSHDA also has assistance for homebuyers such as the federal tax credit, including up to $30,000 through the Loan Rescue Program for those who have fallen behind on their mortgage or property taxes.
MORTGAGE CREDIT CERTIFICATE PROGRAM
- Federal Tax Credit of up to 20% of the mortgage interest paid on your mortgage.
- May allow borrower more income to qualify for the mortgage or to make the monthly payment
- For first time home buyers and buyers targeted in certain areas. (Washtenaw County is a targeted area)
- Only available on Purchases
- Must apply through a participating lender
- Must meet income and sales price limit requirements
- ***Fee for program is 1% of loan amount**
- ***Cannot be combined with any other MSHDA Programs
*Source: Michigan State Housing Development Authority