2002-09-20 Media Release - Price Change Increases Loan Eligibility for Missouri Citizens

Last update: 02/01/2008

Release No:. 2002 - 32
Date: Sept. 20, 2002

Contact: Brandon Laster, 816-759-6692

Price Change Increases Loan Eligibility for Missouri Citizens

Changes in purchase price limits will allow more people to buy their own home with reduced interest mortgages from the Missouri Housing Development Commission. The changes raise the purchase price limits allowed for the Commission’s Mortgage Revenue Bond program. The purchase price limits increased in every area of the state. MHDC has $50 million available for loans throughout the state beginning Sept. 23 at 5.2 percent without cash assistance and 6.1 percent with 4 percent cash assistance payment.

This marked the first change in the purchase price limits since 1986 due to statute restrictions that made it difficult to change the limits. “Working with local realtor boards, we were able to conduct a survey of sales prices in each metropolitan area and the rural areas of the state,” said Erica Dobreff, MHDC Executive Director. “Although this is a temporary measure, we hope that pending federal legislation will eventually change the way purchase price limits are computed and expand eligibility even more.”

Senate Bill 677/House Resolution 951 would limit the purchase price of a home to 3.5 times the qualifying income for the program, making it unnecessary to calculate the home sales data each year.

MHDC’s Mortgage Revenue Bond Program uses the Purchase Price Limits for the maximum amount that qualified buyers can purchase a house through the program. The MRB Program offers first-time homebuyers affordable mortgage financing at below market interest rates. Buyers may also be eligible for a 4 percent Cash Assistance Payment that will help with down payment and closing costs.

The loans are available from participating lenders for properties located in Missouri. The properties purchased through the program can be single-family detached, semi-detached, condominium, town home, or permanently attached manufactured or modular homes (excluding mobile homes). Visit www.mhdc.com for complete program regulations and requirements.

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New Purchase Price Limits

	Non-Target Area		Target Area
	Existing	New	Existing	New
Columbia	$114,000	$146,500	$139,400	$179,100
Joplin	$72,400	$106,00	$88,500	$129,600
Kansas City	$124,900	$182,900	$152,700	$223,500
St. Joseph	$78,800	$171,100	$96,400	$209,100
St. Louis	$127,100	$156,900	$155,400	$191,800
Springfield	$96,400	$116,400	$117,800	$142,300
All other areas	$81,600	$99,270	$99,850	$121,340

Old Price Limits

	Non-Target Area		Target Area
	Existing	New	Existing	New
Columbia	$80,820	$114,350	$98,780	$139,760
Joplin	$66,050	$99,270	$80,730	$121,340
Kansas City	$92,070	$126,020	$112,530	$154,030
St. Joseph	$66,050	$99,270	$80,730	$121,340
St. Louis	$100,810	$121,910	$123,210	$149,010
Springfield	$71,400	$99,270	$87,270	$121,340
All other areas	$66,050	$99,270	$80,730	$121,340

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 counties.