Down Payment Assistance

Down Paymnent Assistance

As a buyer’s agent, one of the challenges I see my buyers experiencing is acquiring the money they need for their down payment. 

These buyers are capable of making the house payment and have qualifying credit but don’t have the additional resources for the down payment.

One of the many solutions that could be available is a MHDC (Missouri Housing Development Commission) First Place Program and Next Step Program.

The down-payment assistance is provided in the form of a five-year 0.00% forgivable grant.  If you sell or refinance before the five full years is up a pro-rated portion of the grant may become due. 

The grants are through the state of Missouri for up to 4%  of the loan amount and the rest of the financing would come from a certified lender in the form of a conventional or FHA loans. 

What this means is that with loan approval for the grant, in conjunction with your primary loan, and request with concessions if your offer is structured correctly one can close on your dream home with little to no money down! 

So, my next question is….”What is holding you back?”

Now, let’s talk about the requirements…

First Place Program

  • Must be 1st Time Homebuyer (Not owned or had interest in a home in past 3yrs)

  • Minimum Credit Score is 620

  • Maximum Purchase Price in a non-targeted area is $271,164 for SFR

  • Income Restrictions Apply ( ie 1-2 Person household in Jefferson City MSA $85,800 year).

  • Loans are subject to recapture tax

  • Cash Assistance for down payment and closing costs I s available in the amount of 4.0% of the first mortgage amount. Cash assistance is in the form of a grant

  • Must be paired with a 30 year fixed rate mortgage (FHA, VA, USDA, or FNMA Qualified)

  • Interest rates are set by MHDC

 Next Step Program

  • Does not have to be a 1st Time Homebuyer

  • Minimum Credit Score is 620

  • Maximum Purchase Price in a non-targeted area is $331,423 for SFR

  • Income Restrictions Apply ( ie 1-2 Person household in Jefferson City MSA $71,500 year)

  • Loans are subject to recapture tax

  • Cash Assistance for down payment and closing costs I s available in the amount of 4.0% of the first mortgage amount. Cash assistance is in the form of a grant * Must be paired with a 30 year fixed rate mortgage (FHA, VA, USDA, or FNMA Qualified)

  • Interest rates are set by MHDC. Rates are typically higher than First Place Program

Lastly, what will my lender need? 

  1. Name and address of employers

  2. List of all outstanding debts and credit cards

  3. Most recent pay stubs

  4. Divorce decrees, if applicable, and other documents relating to certain circumstances which may affect your financial status.

You can obtain more information on the website at www.mhdc.com or with your certified lender.

There are some other great loan programs out there that may also offer 100% financing or down payment assistance that fit your needs.

The best advice I can give you is to talk with your lender and your realtor.