In which situation would MSHDA not provide below-market interest rates?

When considering the programs offered by the Michigan State Housing Development Authority (MSHDA), it is important to understand the eligibility criteria for below-market interest rates. MSHDA typically provides these favorable rates to assist low- and moderate-income individuals in accessing affordable housing options.

In the case of refinancing, MSHDA generally does not offer below-market interest rates because these programs are primarily designed to support the purchase of homes or home improvements, rather than to facilitate refinancing existing mortgages. Refinancing does not usually fall under the same guidelines as acquiring a new loan for purchasing or improving a home, which is why those scenarios often still qualify for assistance. This distinction highlights MSHDA's focus on helping buyers obtain homes or enhance their existing properties, rather than on altering the terms of previously secured loans.

The other situations, such as purchasing a new home or making home improvements, are within the scope of MSHDA’s objectives to promote housing stability. However, if the borrower’s income exceeds the limit, it would also disqualify them from receiving below-market rates, as it does not align with MSHDA's mission to assist those in financial need.