Missouri home buyers who purchase a home in 2010 can get $1,750 from the state of Missouri after closing in addition to the federal tax credit offered for eligible 1st time buyers and current homeowners.
MHDC’s HOPE Program:
The Missouri Housing Development Corporation (MHDC) is offering an incentive to help Missouri home buyers purchase a home this year.
How much money can buyers get?
Eligible home buyers can receive a check after closing equal to the amount of the 2009 property tax bill of the purchased property, up to a maximum of $1250.
In addition, an additional $500 is available for buyers who purchase a qualified new construction energy-efficient home or buy an existing home and then remodel or purchase items to make the home more energy-efficient.
If a buyer purchases a home with 2009 taxes which were less than $1250, then the buyer can receive a larger energy efficiency HOPE incentive so that the total of both incentives equals $1750.
Who is eligible for the HOPE program?
In order to qualify for the tax credit, buyers must:
- purchase a single family residence or a 2-4 family building (new construction, resale or mobile homes on a foundation)
- occupy the purchased property as a primary residence
- be at least 18 years old
- purchase the home from a non-relative
- the purchase contract must be dated on or after January 1, 2010
- meet income eligibility requirements (see chart below, targeted areas include areas in which 70% or more of the area’s families have an income that is 80% below the median state income)
*Gross Household Income is defined as the gross amount of a household’s income at the time they purchased the property before all deductions, except that which is specifically excluded by the Internal Revenue Code.
How do you get the energy efficiency HOPE incentive?
Buyers who are meet the eligibility above can also get reimbursed for energy efficient purchases they make, up to a maximum combined credit of $1750, if they:
- purchase either an energy efficient new home or purchase an existing home, and then remodel or purchase energy efficiency upgrades within 60 days following closing
- apply for the energy efficiency incentive no later than 90 days after closing
- submit required documentation including proof of date of purchase & receipts for the eligible items including receipts for any professional installation that was needed
Items which are eligible for the additional incentive money:
- energy efficient windows
- energy efficient doors
- house wraps
- programmable thermostat controls
- water efficient toilets and faucets
- energy efficient water heaters
- energy efficient lighting and appliances
- sealing heating and air conditioning ductwork
- professional caulking
- insulating water heater pipes
- increasing the R-value of insulation in crawl spaces and attics
- conducting on-site energy inspections and tests, including a blower door test, which tests the overall energy-efficiency of the house, and a duct blaster test, which tests how much the air ductwork leaks
- Energy Star Qualified appliances
What else do you need to know?
$15 million has been allocated to the MHDC Hope program. All eligible participants will receive funding until the money runs out. Applicants are paid in order of when the application is received by the HOPE program, so buyers should submit their application as soon as possible following closing.
The HOPE funds are provided to buyers in the form of an interest free loan which is forgiven if the buyer occupies the residence for at least one year following closing as a primary residence. If the buyer fails to occupy the home for a year, or does not continue to own the property for at least one year, the money will have to be paid back.
For additional information about the program and to see what documentation you need to submit with your application, see MHDC’s FAQ page.
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PDF Possibly Related Posts:
- Missouri Property Tax Credit for Buyers
- Housing Tax Credit for 1st Time Buyers & Current Homeowners
- MHDC Program Gives Down Payment Money to Foreclosure Buyers
- Missouri Residents can use the First Time Buyer Tax Credit at Closing to Cover Costs
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