How many types of loans does MHDC offer under the First Place Loan program?
Three types of funds are available, depending on the borrower’s needs. – Cash Assistance Loan provides 3% of the loan amount to help first-time homebuyers that need assistance with down payment and closing costs. Assistance loans can be used for both existing and new homes. – Non-Cash Assistance low rate loans are offered at a somewhat lower interest rate, usually .25% to .50 % below cash assistance rate. These loans are best for buyers that have adequate funds to pay their own down payment and closing costs. Low rate funds are available for existing and new homes. – Refinance Program provides 3% of the primary loan amount to be used to fund closing costs and related expenses associated with refinancing their existing mortgage. Homeowners still unable to refinance their existing mortgage because of insufficient equity are eligible for an additional $10,000 grant to help them meet program requirements. The total combined amount of the grant and second mortgage is $13,000. homes.
