I thought I would follow up my previous post on the Missouri First Time Home Buyers program with some program details and highlights. We are told that MHDC is targeting mid to late January as a time to release the first bond issue of 2008 and currently I am pre-qualifying buyers now for the program.
Some Program Highlights are:
- No Down Payment required for a single family property.
- Eligible credit including A- credit
- Income Limits are now $57,000 (1-2 person households); $65,550 (3 + persons)
- Reduced Mortgage Insurance (with payment protection)
- 3% cash assistance from MHDC for closing costs and/or to reduce the loan amount
- For first time homebuyers or those who have not owned a house in the past three years
- Cash on hand may be accepted source of funds in some situations
- Payment Protection insurance provides up to six house payments (max. $12,000) upon involuntary loss of job, accidental disability or accidental death or dismemberment. No additonal charge for this coverage
There is a purchase price limit in the state of Missouri loans for first time home buyers can be up to $237,000 in a non-target area and up to 289,700 in a targeted area.
I have worked with this program for a number of years and in 07 helped clients obtain well over 40,000 in bond money grants. It is a great way to help someone become a homeowner, it also can assist the seller since grant money is being given to eliminate some of their expense at having to pay some of the closing costs.