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

Release No. 98-11-31
November 30, 1998

First-Time Homebuyers Eligible For Low-Interest Loans

KANSAS CITY, Missouri -- The Missouri Housing Development Commission is making available their Mortgage Revenue Bond first-time homebuyer loan at 5.9 percent, effective immediately.

"This new rate will make buying a home affordable for an even larger number of Missourians," said Don Brinker, Homeownership Production Manager.

The new rate applies to conventional loans as well as loans backed by Fannie Mae, Federal Housing Administration, the U.S. Veterans Administration and the U.S. Department of Agriculture. MHDC loans are made on 30-year fixed-rate terms. The lender can help you decide the best loan type for each person.

With some exceptions, 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.

Low-income families will also qualify for down payment assistance from MHDC in the form of a Cash Assistance Program (CAP). Those receiving CAP assistance will pay a slightly higher mortgage rate of 6.67 percent. 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.

In cooperation with about 60 banks and mortgage companies serving the entire state, MHDC funds loans for low-income and moderate-income families that seek to buy homes in Missouri. Except in some rural counties and inner-city areas, the funds are restricted to first-time homebuyers.

This 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.

In 1998, MHDC has helped more than 2,500 families become homeowners in Missouri. Many will become homeowners for the first time using the MRB mortgages. The MRB program is not funded by state taxpayers but through the sale of tax-exempt bonds to private investors. Congress authorized the tax-exempt bond.

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NOTES FOR MEDIA REPRESENTATIVES: See the attached lender listing for lenders in your area. The lenders list and MRB program information are also on our website at www.mhdc.com. For more information about MHDC's Mortgage Revenue Bond program (media representatives only), contact Brandon Laster, (816) 759-6692. All questions from homebuyers should be referred to local lenders or the MHDC Homeownership Production Department, (816) 759-6800.

If you would like to receive news releases through electronic mail, please send your name, affiliation, email address and phone number to blaster@gmail.com.