Down Payment Assistance- Missouri First time Home Buyers- funds for closing, down payemnt the new bond program explained - Darren Stewart - OakStar Bank - Springfield MO Loan Officer

By
Services for Real Estate Pros with Mortgage Investment Services Corporation

The state of Missouri next week will be providing Bond Money for first time home buyers - through the Missouri Housing Development Commission- so far the estimate is that 65 million will be the amount of the issue available for the entire state. Due to many changes in mortgage programs, i.e. the elimination of many 100% financing programs, the demand for these funds is expected to make them go very quickly. 

If you are a first time home buyer and have been thinking about purchasing a home, this could be an excellent time to purchase it, a first time home buyer is defined as a person not owning a home in the last 3 years. 

The down payment assistance is coming in the form of a "soft" second- in the amount of 3% of the first mortgage. This mortgage gets recorded but its also at 0 percent interest with no monthly payments, over the course of the first 5 years of owning the home each month 1/60th of the second is forgiven without you making a payment, this amount will also go on record as income and the first time  home buyer would receive a 1099 for the forgiven amount for each tax year up until the 60th month, at the 5 year anniversary the 2nd is completely forgiven.

This program may be combined with FHA, VA, and Rural Development financing.  If you have any questions regarding buying your first home or if you have a client who may have questions I would be glad to assist.

 

Darren Stewart

OakStar Bank

417 447 7927

 

Comments (2)

Molly Lionberger
Salisbury, MD

In Mississippi, we have a Bond program that is extremely successful.  We are able to structure loans along with the help of the borrowers realtors to allow 1st time homebuyers to obtain home ownership with as little as $500 out of pocket.  In some cases, the borrower even gets a return of their earnest money at closing. 

I wish you the best with this program.  Our program doesn't have the 1099 condition though. You did a nice job explaining the program concisely.

Jul 25, 2008 01:31 PM
Darren Stewart
Mortgage Investment Services Corporation - Broken Arrow, OK

Thanks Molly, many of the pre-qualified buyers I have on this program are coming in with less than 500 to the table.

Darren

 

Jul 25, 2008 01:56 PM