You may have recently heard that mortgage rates just jumped nearly .5% in one week!  Seems like bad news if you are a first time buyer but there is GREAT news if your income is below $57,000 a year.

There is a special program for first time buyers offered through the Missouri Housing and Development Fund (MHDC) that offers up to 3% towards your downpayment and the rates are capped quarterly  rather than going up daily like traditional loans. 

Here is the link to the MHDC program:

What does this mean to you if you fit the profile of a first time buyer?  It means that while most traditional buyers may have suddenly seen a jump in their interest rates, if you qualify for this program you are still able to receive a loan with a rate as low as 5.95% (up until about $17 million in new loans are written) because the rate for this program was set last month and remains fixed until the fund is depleted.  Then next quarter they will have a new rate that will again be good for the third quarter.

What's the catch.  Absolutely nothing I promise.  It's Missouri's way of fostering new home growth amongst the population that has the hardest time buying a home.  And it's a great program that has helped many of my own buyer clients.

Just this week I had first time buyers that were pre-qualified through a traditional lender and wrote a contract that was accepted Thursday evening.  Unfortunately rates took their biggest hit on Thursday.  When they met with their lender this morning they found out that their monthly payment had increased $150 in one day and this meant they could no longer afford the house.

Well I never like to see my buyers disappointed so I sent them over to one of my lenders who specialize in MHDC funding.  This afternoon they found out they not only qualify for this program but their rate is $65 less than it was two days ago (in spite of the increasing rates).  And it was actually at the urging of these buyers that prompted me to send out this email as they couldn't understand why nobody had told them about this program.  (They came to me already pre-qualified through a lender their parents recommended).

I'm not NOT one of those agents who tries to "sell" anyone on a particular product or service.  However I also know that first time buyers are brand new to this process and don't always understand or have the experience to know how to get the best deal on a home.  The point being, if you are actively searching for a home than this month might be THE BEST time to buy even though the more traditional buyer will likely wait it out until rates come down (which they may not).

I don't even care if you use my services (though of course they're the best)!  I just wanted to make sure anyone who has visited my site is aware of this program.  If you would like the names and contact numbers for lenders (that I know and trust) who can offer MHDC financing just let me know.  You have no obligation to use me or my services or even those of the lenders. 

Simply send me an email to and you'll automatically be sent their contact name and number.  Or you can call or email me directly and I'll be happy to answer any questions you might have.