We already know about the 8 thousand dollar tax credit being offered for first time home buyers, but the deal gets even better. Today I got an email from Diana Mayfield, she's an agent with Coldwell Banker Gundaker. Diana was actually my agent when my wife and I bought a house last year, so I have a lot of faith in her expertise. Diana told me about a new program being offered in Missouri designed to sell foreclosed properties. Here's the deal:

Mayfield tells me the state has 4.2 million dollars to use for downpayment assistance to borrowers who purchase a foreclosed property.
The subsidy amount will be 20 percent of the purchase price up to 14,999 dollars.
This will be in the form of a second mortgage that will be at 0 percent interest and will be forgiven after 5 years. (this means you have to live in the house for 5 years.)
Some lenders will only lend to first time home buyers, but Mayfield says this is subject to change.
Borrowers must have 8 hours of homeownership counseling.
The purchase price of the home can't exceed 258,690 dollars.
There are many other details about this deal that you should discuss with an agent, or someone who's well versed with the program being offered by the state of Missouri.

If you're looking to get more information about the program, Diana Mayfield told me she's willing to answer any questions. Her number is 314 583-5599.

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