The Missouri Housing Development Commission (MHDC) was created in 1969 to help provide home loan funding to qualified first-time home buyers in Missouri.
There are two programs available for Missouri borrowers through the MHDC. The first is the First Place Homebuyer Program, which provides first-time home buyers and qualified veterans an opportunity to take advantage of affordable interest rates, as well as additional incentives offered by MHDC. First Place Loans are 30-year, fixed-rate, first mortgages, and can be used to secure either a conventional, VA, or FHA loan.
There are two types of loans offered through the MHDC First Place program:
Cash Assistance Loan (CAL) - This loan provides down payment and closing cost assistance for first-time home buyers.
Non Cash Assistance Loan (Non CAL) - This loan provides a lower interest rate to first-time home buyers who do not qualify for down payment or closing cost assistance.
The second financial assistance option offered by the MHDC is the Next Step Program. Qualified first-time and non-first-time home buyers can receive up to 4% of the loan amount for down payment and closing costs. This forgivable second mortgage loan does not have to be paid back as long as the borrower stays in the home for ten years.
MHDC Loans
MHDC loans are mortgage loan products provided by the Missouri Housing Development Commission (MHDC) through USA Mortgage. They are available for properties located anywhere in Missouri and provide up to 4.5% down payment assistance, leaving very little left for the purchaser to pay out of pocket. The MHDC offers both conventional and FHA loans. Rates for these loans are determined by the MHDC and available on their website on a daily basis.
In addition to down payment assistance, the State of Missouri First Place Loan program offers a variety of other incentives such as closing cost assistance, loan forgiveness, and emergency repairs. For eligible homebuyers, this program can provide an affordable path to homeownership without sacrificing important features like quality and location.
To qualify, applicants must first be purchasing a home or property in Missouri. They must meet certain income limits, complete an 8-hour homebuyer education course, and work with an approved homebuyer counseling agency. For more information on the MHDC loans, rates, and other requirements, contact USA Mortgage or visit the Missouri Housing Development Commission website.
Who Can Benefit From MHDC Loans?
There are many people that can benefit from MHDC loans, but if you are within these categories, you may benefit a little more than others:
Clients with little or no money for down payment
First-time homebuyers
Clients who want to buy within the city limit and the house won't qualify for USDA
Clients who wish to use non-owner occupant to help with their debt to income
What is the income limit for an MHDC loan?
MHDC home loan income limits are based on the area, what MHDC program you are doing, and the amount of people who are going to be living in the home.
What is the minimum down payment for an MHDC loan?
MHDC loan is down payment assistance that goes along with certain loan programs. The minimum down payment depends on the loan program you are doing. MHDC will offer 4% of your loan amount to help you with your down payment.
