One of the most difficult hurdles in purchasing a home is saving for the down payment. Flat Branch Home Loans excels in providing the guidance necessary for you and your family. Are you interested in purchasing a home but aren't sure you can afford the down payment or closing costs? If so, the down payment assistance program through the Missouri Housing Development Commission (MHDC) makes it easier to secure your funds!
Eligible borrowers can receive down payment assistance through the state of Missouri using this program. Flat Branch Home Loans is a certified lender and is eligible to offer MHDC financing through our certified loan officers. Funds from MHDC are used to construct, renovate, purchase, and preserve affordable housing. This down payment assistance program is coupled with another long-term loan chosen collectively between you and your Flat Branch mortgage banker.
This program is also known as the First-Time Home Buyer Program.
First-time home buyers are eligible for a First Place loan. In addition, the program has been waived for qualifying veterans and homes purchased in a targeted area. First Place loans are available for eligible buyers who:
First Place loans are known as the affordable choice of first-time home buyers. Cash assistance is given in the form of a second mortgage and will be 4% of the first mortgage amount. This second mortgage is forgiven after the borrower has been in the home for 10 years. After 5 years, the mortgage will diminish by 1/60 every month until the 10th year when it is forgiven altogether. This is a 30-year fixed rate mortgage. Monthly mortgage insurance varies by credit score and the loan program used in conjunction. Also, down payment options vary by the loan program being used.
First-time home buyers and repeat buyers are eligible. These eligible buyers must:
Next Step is known to give first-time home buyers and non-first-time home buyers the opportunity to purchase their home with aid for down payments and closing costs. Cash assistance is given in the form of a second mortgage and will be 4% of the first mortgage amount. This second mortgage is forgiven after the borrower has been in the home for 10 years. After 5 years, the mortgage will diminish by 1/60 every month until the 10th year when it is forgiven altogether. This program has a 30-year fixed rate mortgage and interest rates will be lower for persons buying in opportunity areas.
Through the down payment assistance programs, there are also local grants based out of certain locations that you can potentially qualify for depending on your financial and familial circumstances. Your Flat Branch loan officer can help you determine which programs you qualify for!