Home Buyer Program
Could Be Answer in Disaster Areas
A long-standing Missouri Housing
Development Commission home buyer program could prove to be the
answer for individuals in declared disaster areas. The Mortgage
Revenue Bond program offers low-interest loans with down payment and
closing cost assistance in rural areas of the state.
The loans are being offered at 5.85
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.
“This may be the opportunity many
people have been seeking,” says Don Brinker, MHDC Homeownership
Manager. “It provides a chance for those who were renting to step
up and purchase their first home.”
Eligible homeowners must have a
gross household income less than $54,100 for a one- or two-person
household or $62,215 for a household of three persons or more.
Local mortgage bankers or lenders
originate and close these loans using bond 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.”
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.
For complete details and guidelines,
contact a participating lender visit
http://www.mhdc.com/.
