The Missouri Housing Development Commission has programs to help first time home buyers with special loan programs as well as down payment assistance to help with down payment and closing costs. The toughest hurdle for most first time homebuyers is coming up with enough for their down payment and closing cost expense. The MHDC is committed to helping these buyers get into the home of their dreams.
What Types Of Special Mortgage Programs Are There To Help First Time Home Buyers In Missouri?
The Missouri First Place Loan Program gives first time homebuyers and verterans who are qualified the assistance they need to be able to purchase their own home. The First Place Loan from the MDHC offers below market interest rates and allows potential home buyers to get mortgages in a very competitive market.
Some buyers may be eligible for an interest free, forgivable cash home buying grant second mortgage loan for 3% of the first mortgage balance amount. This second mortgage can be used for down payment and closing costs. Any VA, FHA, Fannie Mae MyCommunity Mortgage or USDA Rural Development loans are eligible for this program. You do not have to be a first time home buyer to be able to purchase in a target area. Talk to your lender to see if the property you are interested in would fall in a target area.
The USDA Rural Housing Development Self Help Housing Program is operated by the North East Community Action Corporation, NECAC in Randolph and Shelby counties as well as Monroe County. The program is designed to for working families and people who want to get the American dream of owning their own home.
Buyers that meet the credit and federal income guidelines are eligible for low rate mortgages through USDA Rural Development. Participants in the program will spend about six months working as a team to build each other’s homes.
Are There Down Payment Assistance Programs In Missouri?
If you are short on savings to buy a home, the MHDC may be able to help. If you are interested in buying a home in a rural area, you may qualify for this special assistance. This program is designed for homebuyers who can get prequalified for a market rate mortgage loan but may not have the necessary savings to cover closing costs, pre paid items and down payment. Most assistance is 3% cash assistance in the form of a second mortgage borrowed with the First Place Loan.
Is The American Dream Down Payment Initiative Program Available In Missouri?
Yes, the American Dream Down Payment Initiative Program (ADDI) is available in Missouri. Through federal Home funds the ADDI gives first time buyers forgivable loans that are equal to 6% of the homes purchase rice. This program helps people get into homes faster than they normally would be able to on their own. To be eligible for this program you must be a first time home buyer. Your income must not exceed 80% of area median income.
Special exceptions exist for single parents and displaced homemakers. This program is available through USDA Rural Development Offices. Your lender will reserve funds while MHDC regulates the closing costs.
You can also get down payment assistance through Ozark Action, Inc. The American Dream Home Ownership Program now has $10,000 grants available to assist buyers with closing costs and down payment. A buyer would need to be able to get a mortgage from an MHDC approved lender and be under the 80% income guidelines. You do not have to be a first time homebuyer to be able to be eligible for this program.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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