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MHDC Launches New Down Payment Assistance Program Aimed at non First-time Homebuyers

Shawn Von Talge



10-21-2016

MHDC Down Payment AssistanceIt’s always a pleasure to see the housing industry adapt to its rapidly changing environment. As of late last month, The Missouri Housing Development Commission (MHDC) did just that. On Thursday, September 22nd, MHDC launched the “Next Step” program, which serves as a growing resource amongst home buyers. Unlike its counterpart “The First Place Program”, Next Step doesn’t require the applicant to be a first-time home buyer. Additional key attributes of Next Step include:

▸ As mentioned there’s no first-time home buyer requirement with this program

▸ Higher income limits than those seen on MHDC’s First Place program. For example,     with the First Place program, the annual income limit for a 1-2 person family in the     Columbia-Jefferson City, MO MSA is $72,500. With these same parameters the annual     income limit for the Next Steps program is $87,000 (a $14,500 increase)

▸ A 4 percent gift is granted by MHDC (to be used for down payment and/or closing     costs and pre-paid items) in the form of a second lien that is forgivable if you remain in     the residence for at least 24 months

▸ Primary residence transactions only (i.e. no second home or investment properties)

▸ Purchase price limit for single family residences of $312,368

▸ Can be used in conjunction with FHA, VA, USDA and Conventional financing     (although FHA is by far the most often used program)

▸ Form #715 must be executed by the borrower prior to the lender reserving the funds     with MHDC

▸ The property cannot be located within a 100-year Flood Plain

As with any loan program there are additional nuances and guidelines that can come into play with the Next Step program. As such it is highly recommended that you discuss the merits of Next Step with a qualified mortgage professional who can help you determine whether or not it’s a good fit for you and your needs.

Thanks for reading!

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