The Missouri Housing and Development Commission (MHDC) is charged with stimulating home ownership across the state. Several times throughout the year, MHDC grants become available for people who have not owned property in Missouri for the past three years. If you are a Veteran, MHDC waives this requirement.
The grants are equal to 3% of your loan amount for the target property and can be used to cover the down payment and closing costs. Because FHA requires a 3% down payment, MHDC fits right in, providing people the opportunity to get into a house with no money down - the seller can even chip in to cover closing costs!
In order to qualify for the cash assistance, you have to receive loan approval and you cannot have a combined household income over a certain amount, depending on how many people are in the household.
MHDC provides this cash assistance tax free, but if you leave the property within 10 years, you may have to pay state income taxes on the money down the road. Consult your tax professional for more details, but keep in mind that regardless of taxes you may have to pay in the future, you will never be required to pay your grant back.
Other benefits of MHDC include below market interest rates and very low closing costs. Also, MHDC is very selective in choosing partner companies, so you can be assured that any bank offering MHDC loans is among the best in the business.
For more details on MHDC, you can contact me or visit their website (www.mhdc.com).
