GRAND RAPIDS, MI - First-time home buyers can get up to $7,500 toward a down payment and closing costs, thanks to a couple of programs offered by the Michigan State Housing Development Authority.

The MI First Home program also is available to past homeowners who lost their homes to foreclosure and have restored their credit for at least three years, according to Mary Townley, MSHDA's director of homeownership.

The program, which is funded through the sale of bonds, is enjoying a resurgence in the past two years as the state's housing market recovers and its residents re-enter the housing market after The Great Recession.

"Last year, we closed about 1,800 transactions with lenders across the state," Townley said.

In Kent County, more than 190 new home buyers took advantage of the program last year, said MSHDA Director Kevin Elsenheimer during a visit to Grand Rapids on Monday, May 9. About 300 Kent County home buyers used the program over the past five years, he said.

The state recoups the down payments from the homebuyer if the house is re-financed or re-sold in five years, said Elsenheimer. Otherwise, the amount is tacked onto the back of the mortgage payment schedule, interest-free, he said.

While homebuyers welcome the extra cash at closing, it's not costing the taxpayers anything, Elsenheimer said. Money for the program is raised through the sale of tax-free bonds by the state.

MHSDA also is promoting a program called MI Next Home, which puts up to $7,500, or up to 4 percent of the sale price, on the table at the closing for qualified homeowners who need the cash to make the leap to a new home.

Qualifying homeowners need a credit score of at least 640 for MI First and 660 for MI Next. The new home can cost no more than $224,500, according to statewide rules. Income levels are variable, depending on the community and, in some cases, if the home is in a targeted area.

More information on the MI First Home and MI Next Home program are available at http://www.michigan.gov/mshda/



Jim Harger covers business for Mlive Media Group. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.