MHDC which is also known as, Missouri Housing Development Commission, is a first-time homebuyer program, which is offered by the states. MHDC is a form of the FHA loan which does allow down-payment assistance.
When considering a new home you should go by these guidelines:
MHDC will allow borrowers to use 3% down-payment assistance which will bring the financing to 99.5% with only .5% down.
USDA requires the property to be in certain locations, where this loan does not have this requirement; any FHA-approved property is eligible for the MHDC loan.
MHDC requires you to meet the income limit
If the property is sold or refinanced less than 3 years, the down-payment assistance money needs to be paid back
MI (Mortgage Insurance) options are about equal to the FHA loan requirements; regardless of the down-payment, MI will be charged.
First-time homebuyers and qualified veterans are the only exceptions to participate in this loan program
Eligible properties for the MHDC loans are single-family detached, duplexes, semi-detached, condominiums, townhomes, modular or manufactured housing.
Contacting a loan officer before house shopping should be your first step in purchasing a new home, you will want to see if you’re “pre-approved” so you can see how much you can afford to borrow and what you can afford to pay on your new home.