A program to provide Down Payment and Closing Cost Assistance to qualified home buyers
Program Purpose
To improve the quality of life of the citizens of Missouri by expanding opportunities to purchase owner occupied single-family properties in eligible areas.
Program Summary
 | MHDC will make available funds as grants to Community Action Agencies and other not-for-profit organizations (the Grantee) in eligible areas for downpayment and closing cost assistance. The Grantee may receive funds to assist in the administration of the program, not to exceed 10% of the total grant amount. |
| The Grantee will use these funds to assist the potential homeowner with the purchase of a single family dwelling. Grantees are encouraged to use these funds in combination with other funding sources. |
| Eligible homeowners will receive a cash assistance grant in the amount of $5,000.00. |
| The affordability of the property shall be maintained for three years. At the end of three years, all restrictions shall be removed, and funds shall be considered a grant. |
| Priority will be given to those agencies claiming preference for disaster victims in one of the 78 declared counties. |
| All properties must pass a Housing Quality Standards inspection. |
Eligible Communities
All areas of the State of Missouri, with the exception of those properties located within
Andrew or St. Charles counties or the City of St. Louis.
Participation may be granted to one or more selectees.
Program Requirements
Homeowners
| Grantees shall provide grants to homeowners whose annual income does not exceed the 80% of the Area Median Income for the property area, in accordance with HOME regulations. |
| The homeowner must occupy the property as their principal residence. |
| The homeowner must execute a Land Use Restriction Agreement (LURA), with a term of three years. Grant funds must be paid in full if the property is sold at any time prior to three years, unless the property is sold to someone meeting current affordability guidelines. The borrower, at any time during the five-year period, may transfer the outstanding balance to a buyer who meets the eligibility requirements of this program. |
| Homebuyers need not be first time buyers. |
Eligible Properties
| All units shall be owner-occupied single family units, meaning that the homeowner must occupy the property as his principal residence. This definition shall include properties held in fee simple title, but only those homes that are single-family detached homes. Property occupied by non-owners, single wide trailers, manufactured homes not permanently affixed to a permanent foundation, semi-detached homes, condominium units, town homes, one-half of a duplex or properties held in contract-for-deed title shall not be eligible. |
| The maximum value of a rehabilitated home under this program shall not exceed 95% of the maximum sales price for a HUD 203B loan in the same area. |
Eligible Activities
| Providing a combination of downpayment/closing cost assistance equal to $5,000 |
Ineligible Activities
| Funding more than a combination of 1% loan origination fee/discount points |
| Funding fees not allowed under other MHDC programs e.g. Doc Prep Fees, Underwriting Fees etc. |
Eligible Purchases
| Homebuyers must execute a real estate purchase contract, and apply for a loan with an approved MHDC lender (list attached) |
| Loans must be fixed rate, with a term not to exceed 30 years. Balloon notes or adjustable rate mortgages are not allowed. |
| Lenders may not charge costs in excess of those allowed under other MHDC loan programs |
Application Packet (Forms): 2004 Files
| |
|
