Tuesday, January 19, 2010

MHDC Free Money

Well, no money is ever really free as someone is paying for it, but why not try to get ahead by taking advantage of opportunities out there like the Stimulus Tax Credit?

MHDC often has different programs in place to benefit buyers (and therefore benefit seller's also!) so make sure to ask your Realtor. For those of you who haven't heard of MHDC it is the Missouri Housing Development Commission and it's homepage is www.mhdc.com.

The major initiatives that I'd like to comment on today is the HOPE initiative. HOPE stands for Home Ownership Purchase Enhancement. This plan was originally announced in November jointly by Missouri Governor Jay Nixon and Treasurer Clint Zweifel.

The current allotment for this program is $15 million dollars. Sounds like a lot doesn't it? Well the maximum amount an individual can obtain from this program is $1,750 and it's for the entire state of Missouri. This means that at the maximum only 8,571 people can take advantage of it. With an estimated 2009 population of just under 6 million people you can see how this money could go fast (and will probably be used up by the time the Homebuyer Tax Credit expires).

So, what is the $1,750 for? While, it's broken down into two sums. A maximum of $1,250 can be allotted towards real estate taxes and a maximum of $1,750 minus the tax credit amount can be alloted towards energy efficiency improvements.

In order to qualify for these funds the property must be purchased as a primary residence and that residence must be maintained for 1 year. There are also income limits which vary per county.

Here is the link to the official page and more detailed information for the HOPE program: http://www.mhdc.com/homes/HOPE/index.htm

There are always lots of different programs out there whether at the city, county, state, or federal level. Be sure to speak to someone knowledgeable in your local market to ensure that you are maximizing the potentially programs you can utilize.

If anyone has benefited from this or similar programs I'd love to hear your thoughts!

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