Program Details and Guidelines

Down Payment Assistance – 6 percent of purchase price

Downpayment assistance is available through USDA Rural Development Offices; lenders reserve funds while MHDC regulates closing costs.

Uses:

·         Reports, fees and inspections

·         Down payment

Differences from First Place Loans

·         More first-time buyer exceptions

·         Lower income limits in most parts of the state for most family sizes

·         Lower purchase price limits

·         No recapture tax

·         Forgivable loan - Must live in home for five years to avoid repayment
 

Eligible properties

·         Single Family units

·         Condominiums

·         Manufactured housing (on a poured permanent foundation)

·         New or existing Missouri properties below 95 percent of the median purchase price for the area (as published by HUD; currently $152,000)

·         Property must pass a local code inspection.  In the absence of local codes a Housing Quality Standards (HQS) or International Building Code (IBC) inspection will be used.  Inspections must be performed by a certified HQS/IBC inspector or city codes inspector in the subject city.
 

Ineligible properties

·         Rental properties

·         Single-wide mobile homes

·         Manufactured homes not permanently affixed to a foundation

·         Properties held on contract-for-deed

·         Income producing properties (farms, for example)
 

Homeowner requirements

·         Families with household income below 80 percent of the median income for their area (identified by county, except St. Louis City)

·         First-time buyers with an exception for displaced homemakers and single parents

·         Homeowner must have a fully-executed sales contract for the property they wish to purchase.
 

Exceptions - First-time buyers:   the ADDI program provides an exception to the first-time homebuyer rule for:

·         Displaced homemakers if

o        is divorced adult; and

o        did not work in the labor force for a number of years but has, during such years worked primarily without direct compensation to care for the family; and

o        is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment; and

o        while married, owned a home with his/her spouse and the residence was awarded to the spouse or required to be sold as part of the divorce settlement.

·         Single parent if

o        Is divorced; and

o        has one or more minor children for whom the individual applying for the loan has custody or joint custody (must be majority custody); or is pregnant; and

o        while married, owned a home with his/her spouse and the residence was awarded to the spouse or required to be sold as part of the divorce settlement.