Which organization provides below-market interest rates to eligible borrowers in Michigan?

• A. Federal Housing Administration
• B. Department of Veterans Affairs
• C. Michigan Department of Revenue
• D. Michigan State Housing Development Authority

Answer: (D)

The idea being tested is which organization in Michigan runs programs that offer loans with rates below the usual market level for eligible borrowers. Michigan State Housing Development Authority is the state housing finance agency that designs and administers mortgage programs specifically for Michigan residents, often providing below-market interest rates plus options like down payment assistance to those who qualify. These state-run programs are aimed at making homeownership more affordable for local buyers.

In contrast, the Federal Housing Administration insures loans so lenders can offer favorable terms, but it doesn’t set a separate below-market rate for Michigan borrowers; the Department of Veterans Affairs provides loan guarantees for eligible service members across the country, not a Michigan-specific rate program; and the Michigan Department of Revenue handles taxes, not mortgage financing.