A catchy title to this blog entry....so what's the catch?

With the federal $8000 tax credit expiring in a few weeks, I wanted to talk about another program, available in Kansas City MO only, for first time buyers.  It's called the KC Dream Home Program and one of my buyers used it this summer to purchase a house in Waldo.

Here's the good news:  this program will give eligible buyers CASH for down payment and closing assistance to purchase a home in the KCMO city limits.  This money is actually a 'loan'--but you don't have to pay it back if you live in the home ten years.  More on that later.  The amount available is up to 20% of the purchase price of the house, maximum $20,000.  Other requirements are:

• You must be a first time homebuyer
• Income guidelines:  up to $39,400 for a single person, $45,050 for 2 persons.
• The home must be priced under $150,000
• You must attend a homebuyer's workshop (usually on a Saturday)
• A KCMO inspector must inspect the home before closing
• There's lots of paperwork to complete (of course)

Your lender  can ask  for the money  AFTER you have a signed contract to purchase a home.  You can fill out the paperwork BEFORE you buy a home.  Buyers are not guaranteed they will receive the funds--there is only so much money in the pot to go around.  But it's worth checking out if you are serious about buying a home. A 20% loan from the City could eliminate your monthly PMI costs and effectively lower your monthly payment. 

Now about the 'loan'.  At closing KCMO will give your lender a check for the loan amount you qualify for. 10% of the loan is 'forgiven' every year..so if you live in the house ten years, you don't owe the city any money.  If you move after 5 years, you will owe 50% of the money that was 'loaned' to you. 

Typically it takes 45-60 days to close a home purchased with the help of the KC Dream Home Program. I was actually surprised at how relatively easy the process was when my buyer used this program this summer. It's worth it if you are willing to put the time into completing the paperwork and attend the workshop.  If you would like more details about the program, email me

Thanks for reading my blog...your comments are welcome!