Opinion - Homebuyers have several opportunities

By Kelvin Simmons

director

Department of Economic Development

JEFFERSON CITY -- The housing industry has been credited in recent months with keeping the U.S. economy vibrant. The lower interest rates available in the past 18 months have allowed many to finally reach the dream of owning their own home. Rising interest rates may have many people thinking the opportunity is no longer available, but this is not true and the time is still right for perspective buyers to realize their dreams.

Missouri citizens should know that they might benefit from programs offered by the Missouri Housing Development Commission, the state's housing finance agency located within the Missouri Department of Economic Development.

The Missouri Housing Development Commission offers below-market interest rates for income-qualified persons through their First Place Loan program.

First-time homebuyers, those who have not owned a home within the last three years, with a household income less than $56,100 for one- and two-person households, or $64,515 for households with more than two persons, may qualify.

The single greatest obstacle to first-time homebuyers is cash for down payment and closing costs. The First Place Loan program offers a 3 percent cash assistance payment to offset these costs and assist buyers in the process.

Additionally, the Missouri Housing Development Commission will unveil the state's version of the American Dream Downpayment Initiative (ADDI) this summer. A federal government program, ADDI gives first-time homebuyers grants worth 6 percent of the home's purchase price. These grants help to defray the upfront costs of purchasing a first home. The federal government has made $1.5 million available to Missouri homebuyers as part of this program.

To be eligible for the program, individuals must be first-time homebuyers interested in purchasing a single-family home, condominium unit, or manufactured housing (on a permanent foundation). There are some exceptions to this requirement, which can be explained upon application. In addition, individuals who qualify for this assistance must have incomes not exceeding 80 percent of area median income.

Each of these programs is offered through the Missouri Housing Development Commission's partnership with participating lenders. More information about these programs is available through these lenders, which are listed on the Commission's Web site at www.mhdc.com. Information about the programs is also available on the site.

Home ownership is a key component for economic development in the state of Missouri. It is an opportunity for Missouri families to invest in their own futures and lays the foundation for healthy communities.

Missouri state agencies are committed to working closely with federal, state and local governing agencies and not-for-profit organizations to add to the growing ranks of families living the American Dream.

Expanding home ownership opportunities and the availability of affordable homes for Missouri citizens strengthens our families financially, increases individual dignity, and improves our quality of life.