Missouri Housing Development Commission TCAL Program Details

·         MHDC makes a 2^nd mortgage to the homebuyer at the time of closing. This is to be used for down payment and closing cost assistance.

·         6% of the purchase price is available (up to $6,750).

·         The TCAL is paired with MHDC financing for the first mortgage in the form of a safe 30-year fixed rate mortgage (FHA, VA, USDA Rural Development, Fannie Mae qualified).

·         The homebuyer must file for the federal tax credit and use the credit refund to repay the MHDC TCAL.

·         If the TCAL is repaid by June 1, 2010, the homebuyer pays no interest, though a modest service fee will apply.

·         If the TCAL is not repaid by June 1, 2010, principal and interest payments to repay the loan over 10 years will begin automatically.

TCAL Program Eligibility

·         All TCAL applicants must be first-time homebuyers.

·         Homebuyers must apply with a certified lender.

·         Homebuyers must not have owned or had principal interest in their primary residence in the past three years.

·         Homebuyers must have qualifying credit (minimum credit score required).

·         Homebuyers must meet income and purchase price limits.

Federal Tax Credit program

·         First-time homebuyers receive a tax credit worth 10% of the home value (up to $8,000 *see 1^st Time Homebuyer Tax Credit).

·         The credit is claimed on the homebuyer’s federal tax return.  This amount (minus any federal tax liability) is refunded to the homebuyer.

·         The federal tax credit is used to repay the TCAL.