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Michigan is offering first-generation homebuyers $25,000 in down payment assistance to help cover the upfront costs of purchasing a house.
The Michigan State Housing Development Authority, MSHDA, announced the First-Generation Down Payment Assistance program Tuesday, Feb. 18. Funded with $8 million from the state budget, the pilot program is expected to help 320 families in Michigan.
The National Association of REALTORS® reports the first-time homebuyer market hit a historic low of 24% last year as buyers face high prices, limited supply and high interest rates. Whereas current homeowners can more easily use their housing equity for cash purchases or down payments.
"The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash," said Jessica Lautz, NAR deputy chief economist and vice president of research.