Missouri: A First-Time Homebuyer's Paradise

The Missouri Housing Development Commission (MHDC) raises funds through the sale of revenue bonds on Wall Street. These bonds provide funds for various state efforts. One of the state’s most important efforts is to offer residents a tremendous opportunity for the future. Missouri is actively competing against other states to keep its citizens from leaving the state. How is this accomplished? By getting first-time homebuyers to lay down their roots - here.

This state agency is called the Missouri Housing Development Commission (MHDC). Commissioners include the Governor, Lieutenant Governor, State Treasurer and Attorney General.

It is important to note; the state’s program is not a social experiment. Borrowers must have earned this opportunity through a proven record of wise credit use.

Program highlights for first-time home buyers:

• Lower interest rates
• Move in with little money out of pocket with reduced mortgage insurance
• May be eligible for job loss protection insurance on MHDC conventional mortgage
• Maximum sales prices: $237,000 for single family Homes, $266,500 for two-family units and condominiums. In special “target areas”* the single-family limit increases to $289,700 and two-family and condominium limit increases to $326,200.
• Maximum income: 1-2 person households - $57,000; 3+ person households - $65,500. All adult occupants must be first-time homebuyers. In “target areas” the maximum household income limits increase to $68,500 and $79,800, respectively.
• All borrowers must be first time buyers, or have not owned a home in last 3 years
• All borrowers must occupy the property

Tax Credit
Whether you take advantage of MHDC or not, The American Recovery and Reinvestment Act of 2009, which was signed into law by President Obama, will provide a $8,000 tax credit for eligible first-time homebuyers. This will provide additional financial incentive to take advantage of the current market.

Question:
So where can you go and buy your first house with no money out of pocket, have the balance of needed cash given to you (granted), and get a below-market interest rate?

Answer:
Missouri