I just talked to a lender yesterday and the money has run out for this program. There are no plans to add more funds to this program.

At this point, the only programs for assistance money for St. Louis area purchases are:

1) the first time buyer federal tax credit (10% of sale price up to $8000) for homes that close by November 30, 2009. MHDC does have a program where you can get some of the money upfront to be used toward your down payment, but you have to use an MHDC loan which has higher interest rates than regular loans.

2) community development grants for specific municipalities, usually $3000-3500 to be used toward down payment assistance. There are income limits for this program.

3) FHA 203 loans - these are FHA loans that build in the cost of some repairs into the loan. The basic idea is that the loan amount is based on the after fixed up value, and not the purchase price. So, if you were going to buy a house that costs $100,000, but after repairs are done it would be worth $120,000, your loan would be for $120,000 minus your down payment. You would then have repairs completed after closing by professionals and the receipts would be submitted for reimbursement to the contractors. Since the loan is based on a higher sale price, your down payment will be a little higher, but you wouldn't have to come up with the cash to do the repairs.

For more info on any of these programs, send me an email and I can point you in the direction of a lender that can help you.

I Herad ther is a 15K tax credit buying a foreclosed home in Missouri,is this true and how do I qualify

John,
I just received an update that the state of Missouri has seen the error in their ways now and has changed it so that you don't have to get the appraisal before putting the contract on the property (who wants to pay for one when you aren't sure your negotiations will be successful?) The final purchase price still has to be 5%below the appraisal price but this can be negoitated with the seller by using an appraisal rider to the contract.

John,
This is the Neighborhood Stabilization Program - where you can get up to 20% of the purchase price of the home (limit of $14,999) to bew used for closing costs and down payment. You can't get any money at closing for any repairs the property needs and the property does need to be liveable at purchase time and you have to intend to live in it. If you live in the home for 5 years you do not have to pay this money back, just the purchase price This is the government's way to reduce the amount of foreclosures on the market so prices on resale homes can begin to rise. The program is for anyone, not just first time homebuyers. The kicker is that you have to do and pay for an appraisal on the home prior to submitting an offer which has to be a minimum of 5% less than this appraisal shows the property is worth. Then you have to get the foreclosure owner ( the bank) to accept this offer. You should have your loan officer order the original appraisal to make sure the appraiser falls under the acceptable guidelines for this particular lender that you want to use and to make sure that if your offer is accepted that you don't have to order an additional appraisal. Not all lenders can do this loan program. The loan officer has to be MHDC (Missouri Housing Development Commission) certified and FHA certified. I have lenders that can do this program and would be happy to help you find a suitable property for this program. You can even search a list of foreclosure properties only on my web site or I would be happy to set up this kind of search for you so that you can receive these lisings automatically as soon as they come on the market. You can contact me through the email link on my site to let me know what price range, area and any other criteria you are looking for in a home.

Stephanie and Michelle and Riahna are correct, I found the reference they were talking about - the rules have changed again, thank you ladies for updating all of us.

John, For reference, when you are looking at foreclosures and short sales, please be aware that there are many different factors involved. Among them:

You typically cannot get a regular FHA loan on a short sale or a foreclosure. You can get a FHA rehab loan at a higher interest rate

If you use the MHDC monies, you will have to complete their educational program (it's about 8 hours long and can be done on a weekend or in the evenings) before you are authorized to use their programs

You must use MHDC approved lenders and you will have a higher interest rate if you use any of the MHDC monies

You can get part of the $8,000 tax credit up front to use toward your closing costs and downpayment through MHDC if you go through their program, regardless of whether you are buying a foreclosure or a regular sale home (up to $6750)

the $15,000 neighborhood stabilization program grant is only for foreclosures and you don't have to be a first time home buyer to qualify for this one.

The loans are forgiveable if you live in the home for the designated time period, otherwise you do have to pay them back.

there are income limits and there are restrictions on what properties the the monies can be used on.

There is more paperwork involved with MHDC purchases than with regular purchases and more deadlines, so I would encourage you to work with a Realtor who has done MHDC sales previously and can guide you through their system, so you don't end up at what is supposed to be your closing missing a vital piece of information or a specific inspection - they are very particular.

http://www.mhdc.com/

let me know if I can be of any further assistance.
Dale Weir

There is a new program from MHDC called the Neighborhood Stabilization Program. There are some limitations - most importantly there are income limitations. I included a link to a website that will answer many of your questions.

It sounds like a great opportunity. The big hurdle is finding a foreclosure that you like and is liveable. Yes, there are many on the market, but they are often neglected, in need or repairs, updates, etc. Some people don't mind doing the work. That's great! But if the appraiser the bank hires finds the home "unliveable" (meaning the bathrooms aren't complete, heating isn't in tact or working, mold, plumbing issues, etc) you won't be able to get traditional financing.

Of course there are some gems to be found. I just want to make sure you have a clear picture of what to expect.

Let me know if I can help you any further.
Stephanie Grossman 314-313-5403

It's a great program that provides a credit of 20% of the sale price up to $14,999 when you purchase a home that is a foreclosure. If you occupy the property for 5 years, you do not have to pay it back.

There are income limits. You do not have to be a first time homebuyer but you do have to intend to occupy the property.

You can find more information at http://letsgetitsold.com/Showcase14.Htm

Hi John,

You are correct. This is a new program being offered from the MHDC called the Neighborhood Stabilization Program. This program is not a tax credit but rather a forgivable 2nd mortgage. There are several requirements but if you are looking for a primary residence then this might just be the program for you. I have several clients who are looking to take advantage of this while they can. Give me a call or shoot me an email. I would be happy to talk over the details with you & answer any questions.

314.336.1934 or Riahna.Meyer@ColdwellBanker.com

John,

That's a new one on me. There are great incentives to buy ANYTHING under $300K if you haven't owned property in the last three years; including a maximum $8,000 tax incentive. I have more info on my website...follow this link: http://www.yourresidentialpartners.com/custom7.shtml

Dana Tippit 314-651-9900

not that I've heard of and I'm a St Louis realtor.