Lack of Down Payment Savings Tops List of Concerns Among Michigan First-Time Homebuyers

LANSING, Mich., June 21, 2017 /PRNewswire/ -- A study by the Michigan State Housing Development Authority (MSHDA) reveals insights into first-time homebuyers' motivations and concerns. The survey of 500 current Michigan residents with annual household incomes between $50,000 and $125,000, found that first-time homebuyers represent a significant piece of the overall housing market for 2017.

Forty-five percent of respondents were considering buying a home in the next 12 months. Of those, 26 percent will be first-time buyers. The top reasons they cite for wanting to purchase a home are the desire to own their own place (83 percent) and being tired of paying rent (44 percent).

Despite these motivations, the study revealed first-time homebuyers worry about everything. While housing prices and available listings are among the main concerns for all homebuyers, there are several areas where first-timers express a higher percentage of uncertainty and concern:

• Not being confident that their mortgage would be approved (32 percent)
• Hard to find credible information and advice on housing and financing (22 percent)
• I don't feel I know enough to make a good decision (21 percent)
• I'm not sure I'll be able to make the new payments (18 percent)

Among those who are looking to purchase their first home more than 12 months out, lack of savings for a down payment was the top concern (55 percent).

"Many of today's first-time homebuyers remember the 2008 housing crisis and the impact it made on many family and friends and that is reflected in the uncertainty and apprehension we see in this study," said Mary Townley, director of homeownership at MSHDA. "Our job is to help empower these first-time homebuyers to become confident, smart buyers and realize the dream of homeownership."

In 2016, MSHDA helped more than 1,600 families at multiple income levels and across Michigan communities become homeowners for the first time. For example, new homebuyers may be eligible for a Michigan Down Payment up to $7,500 when they select the MI Home Loan program, eliminating one of the biggest barriers to becoming a homeowner. MI Home Loan is a statewide mortgage program offering 30-year, fixed rate loans to first-time homebuyers looking to purchase a home up to $224,500, with income limits varying by location. When prospective homebuyers choose a MSHDA loan, they support programs that strengthen Michigan communities by providing help for the homeless, creating and preserving affordable housing, and protecting historic and cultural assets.  

In recognition of National Homeownership Month, MSHDA recognizes the value of homeownership to families and communities and offers valuable resources, including education and loans, to help first-time homebuyers. For those who are getting ready to enter the market, MSHDA offers these helpful tips to making a confident decision in today's competitive housing market.

Prospective homebuyers can visit MichDownPayment.com to learn more about the various programs available and find out if they are eligible.

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