City of Muskegon Homebuyer's Assistance Program

City of Muskegon Homebuyer's Assistance Program is a forgivable loan for homebuyers in Muskegon, Michigan, administered by City of Muskegon Community & Neighborhood Services. The City of Muskegon Homebuyer's Assistance Program provides $1,000-$5,000 toward down payment, closing costs, inspections and prepaid expenses for households at or below 80% AMI purchasing a home within the City of Muskegon (purchase price below $169,000). Assistance is paid directly to the title company and secured by a 5-year non-diminishing lien that is forgiven after five years of owner occupancy. Works with FHA, VA, or Conventional loans; land contracts and cash sales are not eligible. $1,000-$5,000 in down payment, closing cost, inspection, and prepaid expense assistance, forgiven after 5 years. Funding comes from Federal HOME/CDBG funds via City of Muskegon / HUD.

City of Muskegon Homebuyer's Assistance Program offers between $1,000 and $5,000 in assistance. Homebuyer contribution: Buyer must contribute their own funds toward the purchase. Amounts are the program's published maximums, not an offer — City of Muskegon Community & Neighborhood Services determines any individual award.

City of Muskegon Homebuyer's Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by A 5-year non-diminishing lien is placed on the property at closing; the lien is forgiven after five years of owner occupancy. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Muskegon Homebuyer's Assistance Program is open to homebuyers who will live in the home as their primary residence. A homebuyer education course is required, through HUD-certified homebuyer education provider (homeownership class required prior to purchase). Must be able to obtain a mortgage from a lending institution; entire household income counted; must complete a HUD-certified homebuyer education course before purchase; must maintain property as primary residence through the 5-year lien period; termite inspection required, home inspection required for conventional loans.

City of Muskegon Homebuyer's Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Total household income must be at or below 80% of Area Median Income per current HUD income limits. Published household limits: 1p $40,050; 2p $45,800; 3p $51,500; 4p $57,200; 5p $61,800; 6p $66,400; 7p $70,950. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 7. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of Muskegon Homebuyer's Assistance Program caps the purchase price at $169,000. Eligible property types include Single Family. New construction is not eligible.

City of Muskegon Homebuyer's Assistance Program serves homebuyers purchasing in Muskegon, Michigan.

Applications for City of Muskegon Homebuyer's Assistance Program go through City of Muskegon Community & Neighborhood Services, which publishes the current terms and the application steps on its own site. Funds are reserved through Application submitted to City of Muskegon Community & Neighborhood Services with required documentation; payment made directly to the title company. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.