The State of Missouri First Place Loan program offers MHDC Loans through a down payment assistance. The loans are available through USA Mortgage for properties located anywhere in Missouri. MHDC Home Loans are provided both with Conventional and FHA loans, offering 4% down-payment assistance for qualified borrowers, and these loans will leave very little left for the borrowers to bring to the table. MHDC Home Loans Rates are pre-determined by the Missouri Housing Development Commission and available on their website www.mhdc.com on daily basis.
Advantages of MHDC Loans
Who Can Benefit?
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.
MHDC Loan Programs
First Place and Next Step
The MHDC loan is an excellent option for eligible borrowers who want to minimize their upfront cash investment. This program offers down payment assistance in the form of a second mortgage that is structured as a 10-year forgivable lien. You must stay in the home and maintain the original first mortgage loan for ten years.
The lien does not require a monthly payment. After the fifth year, the balance begins to be forgiven at a rate of 1/60th per month, continuing until the end of the tenth year when the lien is fully forgiven, provided program requirements are met.
Guidelines:
- Ten-Year Retention: The borrower must stay in the home and maintain the original first mortgage loan for ten (10) years.
- Gradual Forgiveness (Years 6–10): The second mortgage begins to diminish by 1/60th every month after the fifth year (month 60) until the end of year ten, at which point it is completely forgiven.
USA Mortgage Advantage
USA Mortgage is recognized for excellence in mortgage lending.
Underwriting, processing and funding in the house.
Accepts lower credit scores compared to many other lenders.
Fast turn times on approval and funding.
Down Payment Assistance
USA Mortgage is an MHDC Loan lender with local offices throughout Missouri, Arkansas, Illinois, and nearby areas. Here at the Abadi Region, We have all the resources needed to make your dream a reality. Are you ready to move forward with your next home purchase? One of our experienced mortgage professionals will guide you every step of the way. Apply now and find out if you qualify for down payment assistance program.
FAQs about MHDC Home Loans
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.
First, you must be purchasing a property in Missouri. There are two different MHDC programs which include First Place loan program for first-time homebuyers and qualified veterans or the Next Step program that is for both first-time homebuyers and non-first-time home buyers in Missouri, who may be outside the income limits for the First Place program.
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.
