The Missouri Housing Development Commission (MHDC) started the first Tax Credit Incentive program for first time home buyers in the US. This program is called the MHDC Tax Credit Advance Loan Program and is designed to provide first time home buyers in Missouri the opportunity to use a portion of their $8000 federal tax credit to buy a home.
To be eligible for the federal home purchase tax credit, home buyers must purchase a home in 2009 before 12/1/2009 and be first time home buyers. For more information on the program qualifications of the $8000 tax credit program visit: $8000 Tax Credit For Buying Your First Home.
How Does The MHDC Tax Credit Loan Program Work?
If you plan on using the Missouri tax credit loan program for your down payment you will have to use it in conjunction with a first mortgage purchase program offered through MHDC. You must apply for these programs through a MDHC approved participating lender.
The down payment tax credit loan program provides up to 6% of the home purchase price or a maximum of $6,750, which is used to cover down payment and closing costs. The money is given to you in the form of a second mortgage that does not require any payments and incurs no interest until June 2010.
The program is designed to have you get your 2010 tax return containing your tax credit which you then use to payoff the down payment tax credit second mortgage loan. If you fail to payoff the loan by June 2010, then you will begin to make monthly payments to pay off the loan over a 10 year period and you will begin being charged interest.
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