The Missouri Housing Development Commission (MHDC) has instituted down payment assistance programs for home buyers purchasing a primary residence through the First Place Loan Program.
Bank of Sullivan, a certified lender with the MHDC, will be administering two down payment assistance programs - the Tax Credit Advance Loan Program (TCAL) and the Neighborhood Stabilization Program (NSP).
“These programs give Missourians a significant amount of buying power …” said Greg Spurgeon, single family homeownership administrator for MHDC. “And these purchases will help stabilize and rebuild communities.”
The TCAL program allows qualified buyers to get a down payment loan equal to six percent of the purchase price, or a maximum of $6,750, which is used to cover down payment and closing cost. The home buyer then files for the federal first-time home buyer tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. Purchase must be completed prior to Dec. 1, 2009.
Bank of Sullivan will assist borrowers, through the NSP program; qualified borrowers are eligible to receive up to 20 percent of the purchase price of a foreclosed property, capped at $14,999.
The MHDC received $4.2 million from U.S. Department of Housing and Urban Development (HUD) and will administer the NSP program until funds are depleted.
Tracy Watters, Bank of Sullivan’s Mortgage Department manager and a certified lender, stated, “We are excited to be one of a few lenders in the state to offer these programs. Although there are guidelines and restrictions associated with each program, I believe that there are many people who can benefit or take advantage of this opportunity to become a homeowner.”
The MHDC loan programs are available for households with low-to-moderate income. Both programs can be used for closing cost and down payment assistance. For additional information, contact a Bank of Sullivan lender at 573-468-3191 or 1-800-645-3191.
Bank of Sullivan has helped home buyers since 1895 and has neighborhood branches in Sullivan, Cuba, Union and Labadie. They are an Equal Housing Lender.
MHDC is an instrumentality of the state of Missouri, which constitutes a body corporate and politic. It is governed by a board of directors that includes the governor, lieutenant governor, attorney general, treasurer and six commissioners appointed by the governor with the advice and consent of the Senate.
The commission makes funds available for rental housing developments, preservation of affordable rental housing, home mortgages, home improvement loans, grants to neighborhood housing groups and other housing programs. MHDC functions as a bank, providing financing directly to developers or through a network of private lending institutions.