Friday, July 21, 2006
Contact: Spence Jackson, 573-751-0290
Blunt Awards $50 Million in Tax Exempt Bond Authority to Assist with First-time Home Ownership
JEFFERSON CITY–Gov. Matt Blunt today announced that the Missouri Housing Development Commission (MHDC) will receive $50 million in an early private activity bond allocation to assist first-time home purchases. This most recent allocation has allowed the MHDC to exceed the amount of bonds sold in the entire year of 2005 and effectively increased the number of homeowners that were assisted through the program. In 2005, the MHDC sold $247 million in bonds for single families and in the first seven months of 2006, the MHDC will be able to sell $260 million due to this most recent allocation.
"I feel that it is important to assist Missourians achieve the American dream of becoming homeowners," Blunt said. "This significant allocation of activity bonds will assist those first-time buyers with the rising interest rates and achieve their dreams of home ownership. My administration is committed to quality education, quality jobs and quality homes for all Missourians."
Since January, the MHDC has received $83,516,380 in tax-exempt bonds for single family housing. Along with the new allocation of $50 million, MHDC's overall total has reached $133,516,380.
MHDC's First Place Loan program gives first-time homebuyers the edge they need to purchase a home. Affordable, below market interest rates allow prospective buyers to obtain mortgage financing in a competitive market.
To qualify, applicants must be income-eligible, have qualifying credit and have not owned (or had principle interest in) a residence during the past three years. Any FHA, VA, USDA/Rural Development or Fannie Mae-qualified 30-year conventional mortgage may be used under the rules of the program.
The Missouri Housing Development Commission has invested almost $4 billion for rental housing developments, preservation of affordable rental housing, home mortgages, home improvement loans, grants to neighborhood housing groups and other housing programs. MHDC functions as a bank, providing financing directly to borrowers or through a network of private lending institutions.
###