MEDIA RELEASE
Contact: Brandon Laster, Public Information Officer
(816) 759-6692

Release No. 98-08-12
August 11, 1998

LOW-INTEREST LOANS FOR FIRST-TIME HOMEBUYERS

KANSAS CITY, Missouri -- Local lenders are offering special low-interest loans for first-time homebuyers. In a partnership with Missouri Housing Development Commission, Missouri lenders are offering a 6.05 percent loan and a 6.95 percent loan with a cash-assistance payment. The loans are part of MHDC's Mortgage Revenue Bond Program. [see list of lenders]

Homebuyers may also be eligible for a Cash Assistance Payment. This cash assistance of 4 percent of the loan amount does not have to be repaid and may be applied at closing to a portion of the closing costs, prepaid taxes, insurance premiums, down payment and other loan expenses.

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.

There is an exception for homebuyers purchasing homes in a target area. Federally-targeted areas include parts of the following counties in Missouri: Adair, Barry, Benton, Boone, Buchanan, Butler, Camden, Cape Girardeau, Clay, Dunklin, Greene, Hickory, Howell, Jackson, Jasper, Laclede, Marion, Morgan, Oregon, Pemiscot, Pettis, Ripley, St. Louis City, St. Louis County, Scott, Texas, Wayne, and Wright. Participating lenders will be able to tell you what areas are available.

Loan eligibility in a non-target area is limited to a one to two person household with a total gross income below $44,300 or below $50,945 for a household with three persons or more. In a target area, a one or two person household income should not exceed $53,160 and a three or more person household income should be less than $62,020.

The total gross annual household income is based on income for all residents age 18 or older living, or intending to live, in the home.

Eligible loans include FHA, VA, Rural Development or Fannie Mae-qualified 30-year, conventional. The lender can help you decide the best loan type for each person.

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