Missouri Housing Development Commission’s DPA Initiative
The Missouri Housing Development Commission (MHDC) is dedicated to making homeownership dreams a reality for eligible applicants through its Cash Assistance Loan program. This program is designed to provide crucial financial support for the down payment and other closing costs, ensuring that qualified borrowers can access safe and affordable housing.
Unlocking Homeownership Possibilities
For qualified first-time homebuyers, the Cash Assistance Loan program offers a forgivable second mortgage equivalent to 4% of the loan amount. This assistance is specifically earmarked for covering the down payment and closing costs associated with purchasing a home. What sets this program apart is its forgiving nature.
Forgiveness Over Time
Borrowers who choose to utilize the Cash Assistance Loan will find that it becomes more manageable over time. The second mortgage is structured to be completely forgiven if the borrower remains in the home and retains the loan for ten years. Starting from the fifth year, the second mortgage gradually diminishes by 1/60 each month, culminating in complete forgiveness at the end of the ten-year period.
It’s worth noting that the program aims to empower individuals and families to achieve the security and stability that come with homeownership. By offering substantial assistance for down payments and closing costs, MHDC aims to remove the financial barriers that often stand between aspiring homeowners and their dream homes.
While seller-funded down payment programs have been phased out, MHDC, along with state and local government agencies, continues to provide vital support to borrowers through second mortgages and grants. These programs have distinct eligibility requirements tailored to factors such as property location, purchase price, and income limits. MHDC remains committed to helping individuals and families find their way to affordable and sustainable homeownership in Missouri.
The Cash Assistance Loan program by MHDC is not just a financial lifeline; it’s a stepping stone toward the lasting security and pride that homeownership can bring.