4.5% 30 Year Fixed Rate Loan with Down Payment Assistance
I recently found out from one of my preferred lenders that the rate on an MHDC loan is lower than a normal FHA loan. This information is current as of January 18th, 2011. Once of my buyers qualified for an FHA loan with down payment assistance from the Missouri Housing Development Commission (MHDC). For those that don’t know about the program, a buyer can get a forgivable loan in the form of a 2nd mortgage from MHDC if they meet the requirements set forth in the program. The loan is completely forgiven if the buyer stays in the home for 5 years or more. The state of Missouri will give the buyer up to 3% of the purchase price to put toward their down payment. In the case of an FHA loan a buyer only has to put down 3.5% to begin with! This means that right now a buyer can buy a home with as little as half a percent of the purchase price out of their pocket in the form of a down payment. This loan is available at 4.5% interest on a 30 year fixed loan. This is probably one of the cheapest fixed rate mortgages that has even been available.
MHDC
Here is a link to MHDC’s website for more information
If you would like more info about how to take advantage of this program and buy your first house please contact me.
I would be happy to put you in touch with a loan officer who specializes in MHDC loans!