The Missouri Housing Development Commission (MHDC) has now made that opportunity that much more enticing by releasing their Neighborhood Stabilization Program (NSP), which will provide borrowers with down-payment assistance when they buy foreclosed properties.
Specifically, MHDC will provide the borrower with 20% of the purchase price up to $14,999. This will be in the form of a second mortgage that will be at 0% interest and will be forgiven after 5 years.
As with any loan programs, there are specific rules and for NSP; some of them are as follows:
- The home that is being purchased must be a foreclosed home. (HUD home, FNMA home, or a bank owned home, etc.) No short sales.
- There are specific income limits by County
- There are specific purchase price limits
- The borrower(s) must have 8 hours of homeownership counseling, which can be provided by any certified HUD counselor.
- The home purchase price must be at a discount of at least 5% from current market appraised value.
- The property must have been without tenants for the past 12 months.
In addition to potentially qualifying for $14,999 free money, the borrowers that are first-time homebuyers will then still be able to file for their $8,000 tax credit on their federal income tax return if they purchase before December 1, 2009. (You do however not have to be a first-time homebuyer to qualify for the NSP!
If you know of anybody thinking of buying a home, I can’t imagine it getting much better than the program MHDC is providing with their Neighborhood Stabilization Program. Call your Realtor today and tell them to get out there and find you a foreclosure!!!