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OMB Achieves MHDC Accreditation

OMB Bank's Residential Lending department receives MHDC Certified Lender status.

May 30, 2023 | Madison Foster

Young Caucasian couple standing hand-in-hand in front of a brick house with MHDC logo in upper left corner

OMB's extensive residential lending offerings now include programs through the Missouri Housing Development Commission. These programs, geared toward first-time homebuyers, provide assistance for things such as down payments, closing costs, income limit flexibility and mortgage credits.

First Place Loan Program

As part of OMB's accreditation, the bank is now a First Place Loan Program participant, which gives first-time homebuyers and qualified veterans an edge when buying a home thanks to two highly competitive loan options.

Cash Assistance Loan: This loan provides cash assistance to first-time homebuyers for down payment and closing costs. Qualified first-time homebuyers are eligible to receive a forgivable second mortgage of 4% of the loan amount to be used for a down payment and closing costs.

The second mortgage will be forgiven if the borrower stays in the home and maintains the loan for 10 years. The second mortgage will diminish after year 5 by 1/60th every month until year 10 when it will be completely forgiven.

According to MHDC program rules, no junk fees are allowed and the lender may charge standard closing costs.

Non-Cash Assistance Loan: This loan provides a lower interest rate to first-time homebuyers who do not need down payment or closing cost assistance. Qualified first-time homebuyers are eligible for lower interest rates than those who use the Cash Assistance Loan Program. These rates result in a lower monthly payment.

Under MHDC program rules, this program does not provide down payment and/or closing cost assistance, but like the Cash Assistance Loan no junk fees are allowed and the lender may charge standard closing costs.

Next Step Program

OMB is also a proud participant of the MHDC's Next Step Program, which gives first-time homebuyers and non-first-time homebuyers in Missouri who fall outside the income limits for the First Place Program the opportunity to purchase their own home with higher income limits and purchase price limits.

This program also gives borrowers the opportunity to receive cash assistance for down payments and closing costs. Loan options include a first mortgage through MHDC with a 30 year fixed rate mortgage, with rates set on a daily basis.

The loan type can be an FHA, VA, USDA or conventional loan, though rates could be higher for conventional loans. The Next Step Program borrowers may also take advantage of the MHDC's Mortgage Credit Certificate Program, which provides income eligible first-time homebuyers with an opportunity to reduce the amount of federal income tax owed each year they own and live in their homes.

For additional information, contact our team or call the MHDC Homeownership Department toll-free at 1-800-246-7973.

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