Media Release – July 21, 2003

Commission makes $60 million available for first-time homebuyers
 

The Missouri Housing Development Commission has $60 million ready for first-time homebuyers through their Mortgage Revenue Bond program.  The loans are being offered at 5.99 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.

 “To be eligible for the program, prospective homeowners must not have owned a home in the last three years,” said Don Brinker, MHDC Homeownership Manager.  Eligible homeowners must also 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.  

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. 

For complete details and guidelines visit: http://www.mhdc.com/homebuyer_programs/index.htm

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