State Programs

MHDC issues bonds periodically to support the Mortgage Revenue Bond program. The money has not been completely reserved in the first week of availability for quite some time. The Mortgage Revenue Bond program funds are available on a first-come, first-serve basis through participating lenders. Funds are available year-round in rural areas and federally-targeted census tracts. Jasper and Newton counties are part of the Joplin MSA and are not considered as part of a rural area. [Editors Note: This applies only to MHDC loans and NOT to USDA loans, which are available in rural areas of Jasper and Newton Counties.]

MHDC programs can be used with VA, Fannie Mae, USDA Rural Development, FHA and conventional loan programs. It is also difficult for us to perceive any time where a person would receive a check from our first time homebuyer program (MRB). [Editors note: It may be difficult for MHDC to perceive, but VA loans require no down payment and average 3-5% of purchase price in closing costs. Since VA loans allow the seller to pay all but the prepaid interest and taxes, a 4% grant combined with costs to the buyer of under 2% certainly could result in a refund. This isn't likely, of course, especially if the seller is aware of it when you make your offer. However, it certainly reflects just how low a down payment is possible with this program. If a buyer makes a reasonable earnest money deposit of $500 to $1000 when making an offer on a home, it is undeniably possible for the buyer to leave the closing table with a refund check.]

Your statement is basically correct regarding recapture tax. Three things must happen; home must sell in the first nine years of home ownership, must realize a net profit on the sale of the home, and household income must increase over the amount allowed on the schedule provided the buyer at time of closing.