Advantages of a MBOH Loan
Owning a home is a major financial responsibility. MBOH encourages all prospective homebuyers to take homebuyer education before beginning the process of qualifying for a loan or searching for a home. Go to First-Time Homebuyer Education for more information.
Homeownership programs are geared primarily to help first-time homebuyers. A first-time homebuyer is defined as someone who has not owned a home for at least the past three years. A manufactured home that is not on a permanent foundation is considered personal property, not real estate, and therefore this type of ownership allows the owner to qualify as a first-time homebuyer. In addition, current homeowners in targeted areas, or who are displaced homemakers, may qualify for these programs. Prospective homebuyers must have incomes that fall at or below program income limits to be eligible.
MBOH pays a portion of the fees charged by the lender in originating a loan, thereby lowering the closing costs for the borrower.
There are two parts to the financing of a home, up-front one-time costs and monthly mortgage payments. MBOH assists eligible homebuyers with both in addition to supporting homebuyer education and counseling services statewide.
MBOH also offers lower-interest mortgage loans that reduce monthly payments. For homebuyers with significant federal income taxes, MBOH's Mortgage Credit Certificate can provide more income to make mortgage payments through use of a federal tax credit, on a typical loan about $100 per month.
MBOH has special set-aside programs generally for borrowers at and below 80% of area median income. MBOH reduces upfront costs by paying the fees charged by lenders for making a mortgage loan. In addition, prospective homebuyers may qualify for a second mortgage downpayment loan. Statewide downpayment second mortgage loans offers up to $5,000-$7500 to eligible borrowers. Other down payment programs in specific areas of the state may provide loans of as much as $45,000 or more, with no monthly payments. Downpayment assistance requires prospective homebuyers to complete homebuyer education. See below.