MHDC Qualifications
In my last post I explained the financial benefits of using a MHDC Missouri First Time Homebuyer Loan. This program enables First Time Buyers to purchase a home with a Down Payment of Less Than 1%!!!
In this post I would like to detail the major qualification guidelines for First Time Buyers.
•1) Borrowers must be first time homebuyers. Of course if someone has never owned a home that person qualifies (I know, I know, that was pretty obvious)! The good news about this topic is that MHDC has a broad definition of a First Time Buyer. MHDC states that if you have NOT owned a home in the last 3 years, you are a First Time Buyer for MHDC purposes!!! Someone could have owned 10 homes in the past and still be qualified as a First Time Buyer if they haven't owned a home for the last 3 years. This situation is common for those buyers who may have transferred to Missouri for a new job or for a relocation with the same employer. This situation is also common following a divorce. If you know anyone in these categories MHDC is a great option to consider!!!
•2) MHDC will not allow the property to be in Flood Zone A(generally known as the 100 year floodzone)
•3) MHDC has household income limits. The goal of MHDC is to help low to moderate income First Time Buyers. Please note that MHDC counts income differently than the IRS counts income. This concept is very important. Over the past 20 years I have helped many families buy their first home that were turned away by other lenders due to a lack of experience calculating income based on MHDC guidelines. Please call me on this topic - I have developed an expertise in this area.
•4) MHDC also has Sale Price Limits. These limits are pretty high and typically do not pose a problem. Still, it is important to be aware of this parameter.
MHDC is a wonderful tool but must be approached with an experienced lender who is detail oriented. Please feel free to call me with questions. My mobile number is 314-422-1000.
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