The Missouri Housing Development Commission (MHDC) has a great first time home buyer down payment assistance program.
If you have not owned a home for the past three years, you are considered to be a first time home buyer. Veterans do not have to be first time home buyers to be eligible for this program. You have to have been in active duty and are applying for financing within 25 years after leaving active service.
You can purchase a home anywhere in the state of Missouri and the MHDC will give you three percent (3%) of the loan amount to be used towards a down payment or closing costs. The remaining 0.5% of the down payment is your responsibility.
The down payment assistance is in the form of a second mortgage that bears no interest and requires no payment. After you have lived in the home for five (5) years, the mortgage is forgiven.
There are income requirements. In Jackson County, a family of 1-2 people cannot make more than $69,900 and a family of 3+ people cannot make more than $83,900. You can purchase a home up to $265,150. A minimum credit score of 640 is also required.
So if you are a first time home buyer, check out this great program. Who doesn’t like free money?