KANSAS CITY — The Missouri Housing Development Commission is offering $80 million in low-interest loans for first-time homebuyers. The 30-year loans, part of MHDC's Mortgage Revenue Bond (MRB) Program, are being offered at 6.08 percent or 6.83 percent with a 4 percent Cash Assistance Plan. 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 down payment, closing costs, prepaid taxes, insurance premiums and other loan expenses.

Local mortgage bankers or lenders originate and close these loans using MRB proceeds. All loans must be FHA insured, VA guaranteed, USDA Rural Development guaranteed, or Fannie Mae-qualified conventional loans. The loans are available from participating lenders for properties located anywhere in Missouri.

Prospective homeowners must not have owned a home in the last three years and the gross household income must be less than $52,800 for a 1-2 person household or $60,720 for a household with three persons or more. Higher incomes are allowed in federally targeted areas within the state. Lenders can assist in identifying these areas.

Homes purchased through this program must not exceed $99,270 for a new home or $66,050 for an existing home located outside the federally targeted areas (higher limits exist in the Kansas City, St. Louis, Columbia and Springfield metropolitan areas).

MHDC partners with lenders to provide the program and most questions about the program are answered easily through these agencies. "Since there are some specific limitations to the program, we advise those interested in using the program to directly contact the lenders to see if they are eligible for these low-interest loans," said Don Brinker, MHDC Homeownership Manager.

Funding for the program is accomplished through the sale of Mortgage Revenue Bonds. Mortgage Revenue Bonds are tax-exempt and subject to funding limitations. The state's bond authority is established annually according to federal formula. The Department of Economic Development grants authorization for tax-exempt bond financing. MHDC generally receives authorization for single-family bonds each year.

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