Next Step Program is here
On Thursday September 22, 2016 MHDC will open the new Next Step Program. This program will help more Missouri citizens achieve the dream of homeownership by helping first time homebuyers and non-first time homebuyers with higher income and purchase price limits.
Each business day MHDC will post the interest rates for this program on our website at www.mhdc.com/rates
. It will be the lenders responsibility to go to this site every day to check the rates for that day. Reservations can only be made on the Lender Online website and can only be made from the hours of 9:00 am to 6:00 pm
central time Monday
(excluding state holidays).
All loan reservations for Next Step are for 45 days. Prior to the expiration date, the loan must be closed and a complete compliance package must be received by MHDC and the master servicer for approval. If the lender determines that the loan will not be closed and shipped prior to reservation expiration, it is the responsibility of the lender to request an extension for that loan. There will be two different extension fees:
1. A 15 day extension at .1875% of the loan amount.
2. A 30 day extension at .375% of the loan amount.
The current Loan Origination Agreement signed by all lenders under the First Place Program will be used for the Next Step Program along with attached Commission Notice and the Next Step Operations Manual that can be found on Lender Online under the program documents link. This will mean there will be no signatures needed for participation in the Next Step Program.
The down payment assistance with the Next Step Program will be in the form of a cash assistance loan (CAL). This means the assistance will have a second mortgage attached to it that will be forgiven if the borrower stays in the home/loan for a minimum of two years. The second note and deed of trust will be in MHDC’s name and you can find the documents on the Lender Online website.
Change to the First Place Program
Starting on September 22, 2016 all First Place reservations requesting cash assistance payments (CAP) funds will now be reduced from 4.5 percent to 4 percent of the loan amount. This is to stay consistent with the Next Step Program. If you already have a reservation or reserve a First Place loan with CAP before September 22, 2016 then that loan will still have 4.5 percent CAP amount with that loan.