First Place Loans - Program Details & Guidelines

The First Place Loan program offers first-time homebuyers^* and qualified veterans affordable mortgage financing, often at an interest rate below that offered by market rate loans. The loans are available from Certified Lenders for properties located anywhere in Missouri.

Homebuyers may also be eligible for a cash assistance loan. This interest free, forgivable loan for 3 percent of the first mortgage loan amount does not have to be repaid and may be applied at closing to a portion of the down payment, closing costs, prepaid taxes, insurance premiums and other loan expenses.

Eligible Loans

Initial purchase loans. Refinanced mortgage loans are not eligible. Exceptions are construction-to-permanent loans and bridge loans with an initial term of less than 24 months.

FHA, VA, USDA-Rural Development or Fannie Mae MyCommunityMortgage®, 30-year loans. Your lender can help you decide the best loan type for you.

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.

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:

MHDC has committed to continually fund loans in federally-targeted census tracts in certain counties throughout the state. Homebuyers do not have to be first time buyers if they purchase homes in target areas. Consult your lender for specific locations of target areas. Generally, loans originated in target areas will receive priority for the lowest First Place Home Loan rate that has been offered by MHDC in the last 12 months.

Qualified veterans do not have to be first-time homebuyers. A qualified veteran is any veteran who served on active duty and who applies for financing within 25 years after leaving active service.

Homes purchased in disaster areas are not limited to first-time homebuyers and income and purchase price limits are raised to the targeted area limits.

Borrowers may want to consider contacting a Certified Lender for loan "pre-approval” before you begin house shopping. This helps you know how much you can afford to borrow and what you can afford to pay for a house.

Eligible Properties

The purchase price of a home financed through the program cannot exceed the established limits for Missouri properties. Properties eligible for loans include:

	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

Rates, Fees, and Requirements

	Homebuyers must be aware of the interest rates, fees and requirements associated with these loans. The current interest rate, closing costs and fees can be obtained from a Certified Lender.
	The interest rate of the mortgage loan obtained through this program is fixed for the life of the loan. The lender may charge standard closing costs.
	Loans made in this program may be subject to recapture tax provisions under federal law.
	The homebuyer must occupy the home within 60 days of loan closing.
	All first-time homebuyers^* who select a Fannie Mae MyCommunityMortgage® are required to participate in a homebuyer education and counseling program.
	The mortgage loan you obtain may be assumable only by an MHDC-qualified buyer, if your mortgage loan is an FHA, VA or USDA-RD loan.
	Also see Frequently Asked Questions.

Reserving a Loan

Interested borrowers must contact a Certified Lender to apply for the loan. Funds are allocated on a first-come, first-served basis. When you visit the lender to make your loan application, it is important that you have the following information with you.

List of all outstanding debts and credit cards, including name and address of company, account number, unpaid balance and monthly payment amount

Name and address of employer(s)

Copies of the last three years’ federal income tax returns.

Copy of your most recent pay stub(s)

Copies of divorce decrees, if applicable, and any other documents relating to circumstances which affect your financial status

Please direct all questions about your loan application to the Certified Lender.

^*First-time homebuyers are defined as those persons who have not owned a home or had an ownership interest in a primary residence for the past three years

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