FOR IMMEDIATE RELEASE: Sept. 24, 2007
KC Dream Home Program opens application process
The City of Kansas City, Mo., Housing Development Division of the City Planning and Development Department is accepting applications from first-time homebuyers for the KC Dream Home Program.
The KC Dream Home Program assists low to moderate income first-time homebuyers and displaced homemakers purchase a home of their choice in designated areas of the city. The program provides homeownership opportunities to people who may otherwise lack the resources to own their own home.
Assistance will be provided in the form of a second mortgage loan equal to 20 percent of the purchase price, with a maximum of $20,000 per home for down payment and closing costs. Loans will be underwritten at 0 percent interest and would be forgivable after the owner has owned and lived in the house for 10 years. No monthly payments are required. Housing and Urban Development recapture provisions will apply to homes sold or re-financed without City approval prior to conclusion of the affordability period. The City will provide funds for this program through the Housing and Urban Development’s American Dream Down Payment Initiative Program and the Home Investment Partnership Act program.
Applicants must meet income eligibility requirements, homeowner eligibility requirements and purchase a home meeting program requirements. Household incomes may not exceed the following:
•Two people, $43,800
•Three people, $49,250
•Four people, $54,700
•Five people, $59,100
•Six people, $63,500
The City will not establish any minimum underwriting requirements regarding the consumer’s down payment or out-of-pocket expenses. The underwriting criteria and programs already in use by participating lenders are suited for first-time homebuyers.
Houses must be located within approved neighborhoods as determined by the City. The sales price of the home must not exceed $150,000 and the purchase price must not exceed the appraised value.
Interested persons should contact one of the participating lenders to apply for the program. Participating lenders and other program information can be viewed at http://www.kcmo.org/planning.nsf/web/kcdream.
For additional information, contact Coleman McClain, Housing Development Division, (816) 513-3008.