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The First Place
Loan program offers first-time homebuyers 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 payment. This cash assistance of
3 percent of the 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, Rural
Development or Fannie Mae-qualified 30-year, conventional.
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 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.
Exception:
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.
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
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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. |
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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. |
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Loans made in
this program may be subject to recapture tax provisions under federal
law. |
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The homebuyer
must occupy the home within 60 days of loan closing. |
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The mortgage
loan you obtain will be assumable only by an MHDC-qualified buyer. |
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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.
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