MHDC which is also known as, Missouri Housing Development Commission, is a first-time home buyer 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 with this loan program

Eligible properties for the MHDC loans are, single-family detached, duplexes, semi-detached, condominiums, townhome, 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.

Reza Abadi

About Reza Abadi

Branch Manager at USA Mortgage Home Loans