Am I Eligible?
Homebuyer education and counseling:
Owning a home is a major financial responsibility. MBOH encourages prospective homebuyers to take First-Time Homebuyer Education before beginning the process of qualifying for a loan or searching for a home. Many MBOH programs require homebuyer education.
How do I apply for an MBOH loan?
Prospective homebuyers access MBOH programs through their local lenders. For the name and phone number of participating lenders in your community, check the link to participating lender list.
Who is eligible for MBOH homeownership loans?
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.
How do MBOH programs help in purchasing a home?
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.
Lower monthly mortgage payments:
MBOH offers lower-interest mortgage loans that reduce monthly payments. For example, on a typical loan, MBOH's lower interest rate can lower mortgage payments by about $50 per month, and nearly $18,000 over the life of a loan. * Or, 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.
* Examples based on a $100,000 loan at MBOH 5.5% APR compared to market rate of 6.25% APR for a 30-year, fixed rate mortgage. Mortgage credit certificate based on an interest rate of 6% APR. Actual APR will vary.
Reduced Up-front closing costs and downpayment loans for qualified lower income borrowers:
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. On a typical $100,000 loan, this means a savings of $1,500. 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.