First Time Home Buyer Missouri

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First time home buyer Missouri information and resources to make home buying a breeze. Getting ready to purchase your first home may be both thrilling and intimidating, especially in a competitive market like Missouri’s, where prices have been rising recently.

According to the Missouri Realtors Association, the average property price in The Show Me State was $254,195 in January 2022, an increase of 8.2 percent from the average sale price of $234,975 in January 2021.

The Missouri Housing Development Commission has unique programs for first-time or repeat homebuyers, military veterans, and individuals purchasing homes in selected target areas in order to give affordable homebuying possibilities to state residents.

Through the agency, you may be qualified for a mortgage with a low or no down payment, a cheaper interest rate, and assistance with the down payment.

Missouri First-time Homebuyer Loan Programs

MHDC First Place Loan Program

First-time homeowners (those who haven’t purchased a home in the prior three years) and veterans are eligible for the First Place Loan from the Missouri Housing Development Commission (MHDC).

A conventional, FHA, VA, or USDA loan is eligible for the program’s attractive, often-below-market fixed interest rate, which is applicable to conventional, FHA, VA, and USDA loans.

First Place loans for down payment and closing fees are available with or without a Cash Assistance Loan (CAL).

The interest rate on non-CAL First Place loans is lower than that on CAL First Place loans.

To be eligible for a First Place Loan, you must meet the MHDC’s purchase price and household income requirements.

The maximum purchase price for a single-family home is $311,979, and the maximum price for a duplex is $399,448.

In target regions, the maximum price for a single-family house is $381,308 and the maximum price for a duplex is $488,218.

In contrast, qualifying income restrictions are set by the location of the property and the size of the household.

A complete income limit table is available on the MHDC website.

This program is open to single-family homes, half of a duplex or duplex (as long as you reside in one of the units), semi-detached houses, condominiums, townhomes, and some manufactured homes.

If you are a veteran, you do not need to be a first-time buyer, but you do need a DD Form 214 or declaration of service showing that you served in active duty within the last 25 years.

MHDC Next Step Program

MHDC’s Next Step Program offers affordable mortgages with or without CAL down payment and closing cost help to both first-time and repeat homebuyers.

Through this program, conventional, FHA, VA, and USDA loans are available.

You can also purchase most types of homes, as long as they do not exceed $381,308 (single-family home) or $461,046 (multi-family home) in purchasing price (duplex).

On the MHDC website, you can see the income restrictions for each county, which vary depending on the size of the household.

They are typically greater than the First Place program’s income requirements, offering a Next Step loan a possibility for first-time purchasers who do not fulfill the First Place standards.

Missouri down payment assistance

MHDC First Place Cash Assistance Loan (CAL)

Borrowers who qualify for an MHDC First Place mortgage are eligible for down payment and closing cost help through the agency’s Cash Assistance Loans (CAL).

The assistance, worth 4 percent of the mortgage amount, comes in the form of a second forgiven mortgage that does not need to be repaid as long as the borrower remains in the home for 10 years.

MHDC Next Step Cash Assistance Loan (CAL)

Next Step mortgage applicants are also eligible for a 4% Cash Assistance Loan to be utilized for a down payment or closing costs. Similar to the First Place CAL, this second loan is fully forgiven after 10 years if you remain in the home.

Other Missouri help programs for homebuyers

Mortgage credit certificate (MCC)

The mortgage credit certificate (MCC) in Missouri helps first-time homeowners and veterans to save money on their tax bill owing to a refundable income tax credit.

This benefit is valid for as long as the homeowner resides in the home. The MCC in Missouri is equivalent to 25% of your annual mortgage interest payments.

To qualify, you must meet the program’s income requirements and purchase a home for no more than$311,979 (or $381,308 in a specified area).

Additional First-time Home Buyer Loan Programs

If you are purchasing your first home in Missouri, be sure to investigate your eligibility for the numerous loan programs meant to assist first-time buyers.

FHA loans, for instance, are easy to qualify for even with poor credit and a tiny down payment. Veterans and service members may qualify for a VA loan with no required down payment.

With a USDA loan, homebuyers in some rural areas are eligible for 100 percent financing. Bankrate’s guide to first-time homebuyer loans and programs contains information on how to qualify for these and other programs.