MHDC - First Time Buyer Program
MHDC's Missouri First Place Loan program gives qualified first-time homebuyers and qualified veterans extra assistance to purchase a home. The interest rates provided by MHDC are competitive and MHDC offers options that assist a buyer with the down payment. This assistance is known as the MHDC Cash Assistance Program (CAP). The Cash Assistance Loans may be applied at closing to a portion of the down payment, closing costs, prepaid taxes, insurance premiums and other loan expenses. It is common for the First Time MHDC Buyer to apply the CAP toward the down payment and ask the seller to pay some, or all, of the buyers closing costs. Please see my earlier posts for ideas and limits on this concept.
The table below summarizes MHDC First Place Programs:
•· Cash Assistance Loan (CAL) provides cash assistance to first-time homebuyers for down payment and closing costs.
•· Non Cash Assistance Loan (Non CAL) provides first-time homebuyers who do not need down payment and closing cost assistance a lower interest rate.
•· Refinance Loan Program is a temporary program available for the refinance of subprime loans.
Eligible Borrowers
The total gross annual household income for all residents living, or intending to live, in the home, age 18 or older, must be within the limits established for household income. There are a few exceptions to this general rule. For example, if a child living in a home is a student and also earns income via a part time job, this income is often excluded from the MHDC maximum income limit. Please call me for details on this important topic.
Total gross annual household income is calculated using all sources of income including, but not limited to; wages, overtime, bonuses, child support, alimony, commissions and earnings from a second job, business and investments.
Only first-time homebuyers and qualified veterans may participate in the program. A qualified first-time homebuyer (and spouse) cannot have had an ownership interest in a primary residence for the past three years.
Exceptions: There are a few exceptions to the first time buyer requirement for MHDC. Homebuyers who wish to use the MHDC program do not have to be first time buyers if they purchase homes in target areas. Please call me for a list of target areas.
Eligible Properties
MHDC has a maximum sale price limit for participation in the program. In addition to this, MHDC will only lend on the following types of homes:
•· Single-Family Detached
•· Duplexes - provided one unit is owner-occupied and the units are at least 5 years old
•· Semi-Detached
•· Condominium
•· Town home
•· Modular or manufactured housing, permanently attached to a foundation, excluding mobile homes
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