Housing Authority Announces $70 Million Bond Issue To Finance Homes for Low Income Families

LANSING, Mich., Aug. 24, 2011 /PRNewswire-USNewswire/ -- The Michigan State Housing Development Authority (MSHDA) announced today that it has issued bonds in the aggregate principal amount of $70,000,000 on July 26, 2011, and will use the proceeds of such bonds to make mortgage loans to eligible low and moderate income applicants to finance single family homes. Reservations are now being accepted for the loans to be made from the proceeds of the bonds.

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"Michigan has been a national leader in making housing more affordable for low and moderate income families," MSHDA Executive Director Gary Heidel said.  "Through this program, more hard-working families in Michigan will be able to realize their dream of homeownership."

According to Heidel homebuyers with household incomes of $59,600 to $108,000, depending on the location of the property, may qualify for the 30-year loans to buy new or existing homes.

Eligible homebuyers with incomes of 80 percent of county median or less (adjusted for family size) also may qualify for up to $7,500 in down payment assistance, which is available for some of MSHDA's loan programs.

"We recognize that many homebuyers can afford mortgage payments but have limited resources for the down payment needed to buy a home," Heidel said.  "By offering this assistance, we can help families who otherwise might be shut out of the market."

Buyers may purchase a home costing up to $224,500.

The Michigan State Housing Development Authority is not a direct lender; therefore, interested applicants can locate a MSHDA Participating Lender at www.michigan.gov/mshda.

MSHDA raises funds to finance home mortgages through the sale of mortgage revenue bonds to investors. No state tax dollars are used.  To date, the agency has financed over 50,000 home purchases in the Single Family program, for an investment of $2.2 billion.

The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*

*MSHDA's loans 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. For more information, visit www.michigan.gov/mshda.

SOURCE Michigan State Housing Development Authority