Top Choice Home Loan Initiative
To facilitate the realization of homeownership dreams, the Missouri Housing Development Commission has introduced the First Place Loan Program. This program is tailored to assist first-time homebuyers by providing essential support for down payments and closing costs.
Extensive Financial Assistance
Under the umbrella of the First Place Loan Program, eligible applicants can access financial assistance of up to 4 percent of the initial mortgage amount. These funds are earmarked to alleviate the financial burden of down payments and closing costs. The unique aspect of this support is that it is extended through a forgivable second mortgage. This means that borrowers are not required to repay this loan as long as they maintain their residence in the home for a period of 10 years. As a progressive incentive, after the fifth year, the mortgage balance gradually decreases by 1/60th each month, culminating in complete forgiveness at the end of the term.
Stringent Eligibility Criteria
To qualify for the First Place Loan Program, applicants must fulfill specific criteria. Primarily, all applicants must be categorized as first-time homebuyers, which signifies individuals who have not held ownership or substantial interest in a home within the past three years. There are exceptions for qualifying veterans or those purchasing homes in designated Targeted areas. Furthermore, applicants must adhere to the program’s predefined income and credit score limits to be considered eligible.
Property Selection Guidelines
Homes procured through the program must function as the primary residence for applicants, and they must take occupancy within 60 days of the loan closing. Eligible property types encompass a diverse range, including single-family detached homes, one-half duplexes, semi-detached homes, condominiums, townhomes, or manufactured homes affixed to a permanent foundation. Duplexes can be considered, provided that one unit is owner-occupied and both units are at least five years old. The location of the property is also crucial; it must be situated outside the 100-year floodplain. Moreover, homes must adhere to specified purchase price limits, which are detailed as follows:
- Single Unit Non-Targeted: $248,098
- Single Unit Targeted: $303,231
- Two-Unit Non-Targeted: $317,655
- Two-Unit Targeted: $388,245
The First Place Loan Program is a valuable resource for aspiring homeowners, offering them the financial assistance needed to embark on their homeownership journey with confidence and support.