Always ready buy your first home can be both exciting and daunting – especially in a competitive market like the one in Missouri, where prices have been rising lately. The average home price in The Show Me State was more than $ 234,900 in January 2021, up over 23 percent year over year, according to the Missouri Realtors Association.
To provide affordable home purchase opportunities for state residents, the Missouri Housing Development Commission offers special programs for first-time or repeat buyers, military veterans, and home buyers in specific target areas. You might be eligible for one through the agency Low or no down payment mortgage with a lower interest rate and Advance payment assistance.
Missouri First Time Buyer Loan Programs
MHDC loan program for first place
The Missouri Housing Development Commission’s (MHDC) First Place Loan is for first-time buyers (or those who have not owned a home in the past three years) and veterans. The program comes with a competitive fixed interest rate that is often below the market rate and can be applied to a conventional loan, an FHA, VA, or USDA loan.
First Place Loans are available with or without a Cash Assistance Loan (CAL) to support a down payment and closing costs. However, non-CAL first place loans have a lower interest rate than CAL first place loans.
To qualify for a First Place loan, you must meet MHDC purchase price and household income limits. The purchase price can go as high as $ 294,600 for a single family home or $ 377,219 for a duplex. In the destinations, the maximum price is higher: $ 360,067 for a single family home or $ 461,046 for a maisonette.
Qualified income limits, on the other hand, are determined by the location of the property and the number of people in your household. You can see a detailed one Income limit table on the MHDC website.
Most types of homes are eligible for this program, including single family homes, a half maisonette or maisonette (as long as you live in one of the units), semi-detached houses, condos, townhouses, and some manufactured houses.
If you’re a military veteran, you don’t have to be a first-time purchaser, but you will need a DD Form 214 or statement of work showing that you have served in active service over the past 25 years.
MHDC Next Step program
MHDC’s Next Step program is designed for both first-time and recurring home buyers, offering affordable mortgages with or without CAL down payment and assistance with closing costs. Conventional loans, FHA, VA, and USDA loans are available through this program. You can also buy most types of homes as long as they fall below the purchase price limit of $ 360,067 (single family) or $ 461,046 (duplex).
The income limits for each county, which vary based on household size, are available on the website MHDC website. They are generally above the First Place program income limits, so a Next Step loan is an option for first-time buyers who do not meet the First Place criteria.
Deposit Assistance in Missouri
MHDC First Place Cash Assistance Loan (CAL)
Borrowers who qualify for an MHDC First Place Mortgage can get assistance with down payment and closing costs through one of the agency’s Cash Assistance Loans (CAL). The 4 percent mortgage assistance is a forgivable second mortgage that is non-repayable for as long as you stay in the house for 10 years.
MHDC Next Step Cash Assistance Loan (CAL)
Next Step mortgage borrowers can also obtain a 4 percent Cash Assistance Loan that can be used for a down payment or closing expenses. As with the First Place CAL, this second loan will be fully granted after 10 years as long as you stay at home.
Other aid programs for Missouri homebuyers
Mortgage Loan Certificate (MCC)
Missouris Mortgage Loan Certificate With (MCC), first-time buyers and veterans can save money on their tax bill thanks to a tax credit that can be used as long as they live in their home. The Missouri customer center is worth 25 percent of your total annual mortgage interest. To qualify, you must meet the program income limits and the home you buy cannot be more than $ 294,600.
Other first-time buyer loan programs
When buying your first Missouri home, consider your eligibility for the many loan programs available nationally designed to help first-time home buyers. FHA loans, for example, can be easy to qualify even if you have low credit or a small down payment. Military personnel and veterans could qualify for a VA loan with no down payment. Those buying a home in certain rural areas may qualify for 100 percent financing with a USDA loan. You can find out how to qualify for these and other programs at Bankrate Loans and Programs for First Time Buyers to lead.
For more Missouri home ownership programs, including by city, see HUD.gov.
At the beginning of your home buying journey, take the time to compare them latest mortgage rates from a variety of Missouri mortgage lenders.
For details on any of the Missouri Housing Development Commission’s homebuyer programs, contact a participating lender in your area by searching your zip code or city through the MHDCs List of Approved Lenders.