Always First in Homeownership

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The First Place Program

helps potential

first-time

homebuyers

or qualified veterans

save

money by offering

mortgage financing with interest rates that are lower than regular market

rates. For

homebuyers

with

limited

savings, the program provides the option for

Cash

Assistance

to be used for down payment and closing costs.

Loans are provided by

Certified

Lenders for any eligible property in the state of Missouri. All interest rates and allowable

closing costs are set by Missouri Housing Development Commission

with no minimum

down

payment or minimum loan amounts.

First Place With

Down Payment

Assistance

Not

only can

first-time

homebuyers*

receive lower rates, qualified

homebuyers are eligible

to receive a 100% forgivable

second

loan

equal to

of the total

mortgage

amount

to help

with

down payments and closing costs. The second

loan

will be forgiven if

the borrower

stays in the home

and maintains the original

loan for ten years.

After year five, the second

mortgage will begin diminishing by 1/60 every month until year 10 when it will be

completely forgiven.

First Place Without Down Payment

Assistance

Loans

Qualified first-time

homebuyers*

may opt

to use the First Place Program without Down

Payment

Assistance

save even more money by

lowering

their initial interest rates.

Typically, these loans are .25% to .50% below the

rates offered with

Down Payment

Assistance. Non-Down Payment

Assistance Loans are best for buyers who have

adequate

funds to pay down payment and closing costs

but

are looking to save

money

with

better rates.

Eligible Loans

 Initial purchase loans

 FHA, VA, or USDA-Rural Development

 FNMA HFA Preferred Conventional or Freddie Mac HFA Advantage Conventional

 30-year loans

 Refinanced mortgage loans are not eligible. Exceptions are construction-to-

permanent loans and bridge loans with an initial term of less than 24 months.

Talk to a Certified Lender to help you decide the best loan type for you.

Eligible

Borrowers

Eligible borrowers must

meet credit score, debt-to-income ratio thresholds, and be within

eligible household income ranges. Minimum eligibility requirements include:

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 First-time homebuyer or qualified veteran*

 Minimum credit score of 640 (subject to change)

 Debt-to-income ratio of 45% or less

 Debt-to-income ratios up to 50% or less for FHA and Government Sponsored Entities

(minimum credit score of 680 with these circumstances)

 The total gross annual household income must be within the established limits (vary

by area)

 Loans are subject to federal compliance requirements and may have minimum credit

scores greater than 640—lenders reserve the right to be more restrictive

Total gross annual household income is calculated using all sources of income for all

borrowers and household members living, or intending to live in the home including, but not

limited to wages, overtime, bonuses, child support, alimony, commissions; and earnings

from a second job; business and investments.

Eligible Properties

The purchase price of a home financed through the program cannot exceed the established

limits for Missouri properties. Eligible properties include:

 Homes within the purchase price limits (see website for details)

 Single-Family Detached

 Owner-Occupied Duplexes that are at least five years old

 Semi-Detached

 Condominiums

 Town Homes

 Doublewide mobile homes, modular or manufactured housing attached to a

permanent poured foundation

 Homes must be located outside of the 100 year floodplain

Rates, Fees, and Requirements

 Interest rates may vary. Talk to a certified lender to find out current interest rates

and closing costs and fees

 Interest rates are fixed for the life of the loan

 Homebuyer must occupy the home within 60 days of closing as a primary residence

 Loans made in this program may be subject to recapture tax provisions under federal

law

 No junk fees are allowed

 Lender may charge standard closing fees

What’s next?

Interested borrowers must contact a Certified Lender to apply for the loan. Funds are

allocated on a first-come, first-serve basis. When you visit the lender to make your loan

application, it is important that you have the following information with you:

 List of all outstanding debts and credit cards, including name and address of the

company, account numbers, unpaid balances, and monthly payment amounts

 Name and address of employer(s)

 Copy of your most recent pay stub(s)

 Copies of divorce decrees, if applicable, and any other documents relating to

circumstances which affect your financial status

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*Exceptions:

Homebuyers do not have to be first-time buyers if they purchase

homes

federally-

targeted census tracks.

Consult your lender for specific locations of

target

areas.

Generally,

loans originated in

target areas

will receive priority for

the lowest First

Place Home Loan rate that has been offered

by MHDC

in the last 12 months.

Qualified

Veterans

do not have to be first-time homebuyers.

A qualified

Veteran is any

Veteran who served active duty and who applies

for financing within 25 years after

leaving

active service.

First-time homebuyers

are defined as those persons who have not owned a home or

had

an ownership interest in a primary residence for the past three years.

Please direct all questions about your

loan application to the

Certified Lender.