Missouri residents wishing to purchase their first home or get help with a second mortgage can investigate financial assistance from the Missouri Housing Development Commission (MHDC). Created in 1969 by the Missouri General Assembly, the MHDC administers and provides financing for the construction of affordable housing and funding for home loans to qualified home buyers through a network of certified, private mortgage lenders. The MHDC offers two different programs to help Missouri borrowers.
The First Place Loan is a program that provides money to certified lenders at below-market interest rates to qualified first-time home buyers and veterans in Missouri. The MHDC defines a first-time home buyer as those persons who have not owned a home or had an ownership interest in a primary residence for the past three years.
There are two types of loans offered through the MHDC First Place program:
- Cash Assistance Loan (CAL) provides down payment and closing cost assistance for qualified first-time home buyers.
- Non-Cash Assistance Loan (Non-CAL) provides a lower interest rate to first-time home buyers who do not qualify for down payment or closing cost assistance.
First Place Loans are 30-year, fixed-rate, first mortgages, and can be used to secure either a conventional, VA, or FHA loan.
The second financial assistance option offered by the MHDC is the Next Step program. Qualified first-time and non-first-time home buyers can receive up to 4% of the loan amount for down payment and closing costs. This forgivable second mortgage loan does not have to be paid back if the borrower stays in the home for at least ten years.
There are purchase price limits for either single-family homes or duplexes and income limits based on the Missouri county the residence is purchased. Visit the MHDC Next Step page for those particular limits.
It is important to note that these options are not “credit repair” programs; applicants must still meet the same credit requirements as any homebuyer. But a borrower can save thousands of dollars by getting a First Place Loan or Next Step cash assistance loan.
NASB is a certified lender of First Place Loans and the Next Step program, and if you would like to learn more, give one of our experts a call at 855-465-0753 or click here.
