Qualified individuals in Missouri have the option to get a First Place Loan with or without Cash Assistance.
Those who opt to get a loan with Cash Assistance will receive as much as 4% of the first mortgage amount in assistance funds to help with the down payment and closing costs. This is offered as a second mortgage that can be forgiven providing that the borrower uses the property as his or her primary residence for at least ten years. The loan is forgiven at a rate of 1/60 every month starting after year 5. Using this rate, the loan is forgiven entirely by year 10.
The lender is allowed to charge the borrower standard closing costs, but junk fees are not allowed.
Income limits apply for this program. Purchase price limits also apply. As of 2020, these limits are as follows:
- Single Family Houses in Target Areas - $360,067
- Single Family Houses in Non-Target Areas - $294,600
- Duplexes in Target Areas - $377,219
- Duplexes in Non-Target Areas - $461,046
Other programs in Missouri:
- Next Step Cash Assistance Loan
- CAASTLC Down Payment Assistance
- Individual Development Account
- Columbia Homeownership Assistance Program
- Springfield Down Payment Assistance