FOR IMMEDIATE RELEASE: Sept. 25, 2007
KC Dream Home Program now available citywide
The City of Kansas City, Mo., Housing Development Division of the City Planning and Development Department has expanded its KC Dream Home Program to include all city residents who meet income and homeowner eligibility requirements.
Previously, the program was offered only in select areas of the city.
“Due to citywide interest and program growth, we decided it was the best option to open the KC Dream Home Program to any homeowner within the city limits who meets the other eligibility requirements,” said Coleman McClain, administrative officer, KC Dream Home Program. “This change is meant to maximize the benefits this program can have for homeowners.”
The KC Dream Home Program assists low- to moderate-income first-time homebuyers and displaced homemakers purchase a home of their choice. 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:
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. 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://ww.kcmo.org/planning.nsf/web/kcdream.
For additional information, contact Coleman McClain, Housing Development Division, (816) 513-3008.