Commission expands income eligibility for first-time homebuyers
New income limits for first-time homebuyers expands the number of people
eligible for the Mortgage Revenue Bond program. Beginning April 1, 2003,
eligible homeowners must have a gross household income less than $54,100
(a $1,300 change) for a one- or two-person household or $62,215 (up from
$60,720) for a household of three persons or more.
The Missouri Housing Development Commission makes an additional $70
million ready for first-time homebuyers through their Mortgage Revenue
Bond program on Monday, April 7. The loans are being offered at 5.25
percent or 6.09 percent with a 4 percent Cash Assistance Payment for
down payment and closing costs. 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.
“The MRB program allows homebuyers who often would not be able to afford
to buy a home a new opportunity to achieve this goal,” said Don Brinker, MHDC Homeownership Manager.
The program does place limitations on the purchase prices of the home.
For all non-metropolitan areas of the state, purchase prices are limited
to $81,600 for an existing home and $99,270 for new construction.
Purchase price limits are different in the city of St. Louis and the
following counties: Boone, Jasper, Newton, Greene, Christian, Webster,
Cass, Clay, Clinton, Jackson, Lafayette, Platte, Ray, Andrews, Buchanan,
St. Louis (City), Franklin, Jefferson, Lincoln, Warren, St. Charles,
Crawford (Sullivan City only) and St. Louis.
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.
MHDC partners with lenders to provide the program and most questions
about the program are answered easily by staff of these partners. “Since
there are some specific limitations, 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 Mr. Stalsworth. “If individuals
don’t have a local bank who offers the MRB program, we encourage them to
contact their banks and let them know they are interested in the
program. The banks really have no way of knowing who is interested until
homebuyers let them know.”
For complete details and guidelines, contact a participating lender
visit our web site
.
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