City of Columbia Homeownership Assistance Program
Financial Assistance for Homebuyers in Missouri
Under this program, eligible applicants can receive up to $10,000 or 10% of the purchase price (whichever is less). These funds come in the form of a forgivable, 10-year loan with zero interest and can only be used for down payment and closing cost or to reduce the principal amount of a loan. Prepaid costs such as taxes and insurance cannot be covered with program funds.
In cases where additional assistance is required to meet lender or program underwriting requirements, the City may increase assistance to a maximum of $10,000 or 10% of the purchase price, whichever is less. An additional grant of $500 is also available to offset costs for lead hazard reduction.
The Homeownership Assistance Program is open to applicants who are first-time homebuyers (those who have not owned a home in the past three years), displaced homemakers, or single parents. Applicants must fall at or under 80% of the area median income (limits shown below) and have an average combined credit score of at least 600. They are also required to attend a homebuyer education program, such as Pre-Purchase Homebuyers Seminar or MoneySmart. In some cases, completion of the MoneySmart program allows homebuyers with credit scores below 600 to qualify for assistance. All applicants are required to contribute a minimum of $500 in cash toward the home purchase, and they must have no more than $15,000 in readily available resources.
Any home purchased under this program must serve as the borrower’s primary residence and must be a single-family dwelling located within the City of Columbia, and not within a designated flood plain area or on land known to be the site of previous dumping of toxic or hazardous wastes. Mobile homes are not eligible. The home must fall within the following maximum purchase price limits:
1 bedroom Existing Home: $159,000
2 bedrooms Existing Home: $203,000
3 bedrooms Existing Home: $246,000
4 bedrooms Existing Home: $304,000
1 bedroom New Construction Home: $224,000
2 bedrooms New Construction Home: $286,000
3 bedrooms New Construction Home: $347,000
4 bedrooms New Construction Home: $430,000
The applicant household must be at or below 80% of the area median income.
1-person household: $45,750
2-person household: $52,300
3-person household: $58,850
4-person household: $65,350
5-person household: $70,600
6-person household: $75,850
7-person household: $81,050
8-person household: $86,300
(Note: All figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Missouri
Missouri's Homeownership Assistance Program helps eligible applicants buy a safe, affordable home, with down payment and/or closing cost assistance
In an effort to help individuals achieve their dreams of homeownership, the Missouri Housing Development Commission introduced the First Place Loan Program, which offers first-time homebuyers down payment and closing costs assistance.
In an effort to help residents achieve their dreams of homeownership, the City of Blue Springs and mortgage lenders of the area created the First Time Homebuyer (FTHB) Program.
The Missouri Housing Development Commission offers eligible applicants assistance funds with the Cash Assistance Loan to help cover the cost of the down payment and other closing costs. This is to help qualifying borrowers achieve their dream of homeownership and gain access to safe and affordable housing.
One of the major obstacles on the path to homeownership is the down payment. In an effort to help individuals overcome this obstacle, the Missouri Housing Development Commission introduced the Next Step Program.
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