Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Missouri
CAASTLC Housing Assistance
Missouri’s Community Action Agency of St. Louis County Inc. provides Housing Assistance programs to help first-time homebuyers buy a home.
Available Assistance
CAASTLC offers Individual Development Account (IDA) to all applicants who successfully complete the program and save their money can receive down payment assistance to offset the cost to buy a home. Then, the county that you live in will determine the amount of assistance.
- St. Louis County: Zero-interest deferred loan – $3,000 due upon sale/transfer
- City of Florissant: Zero-interest 5-year loan forgivable up to $3,000.
- St. Charles City & County – Zero-interest deferred loan – $5,000 due upon sale/transfer
- City of O’Fallon: Zero-interest deferred loan – $5,000 due upon sale/transfer
Eligibility Requirements
All applicants must have completed homebuyer education. They must also have $1,000 in savings and their household income cannot exceed 80%.
City of Springfield Down Payment Assistance
Missouri’s City of Springfield Down payment Assistance Program provides assistance funds for first-time homebuyers to help them pay their initial mortgage costs.
Available Assistance
Eligible applicants can receive assistance funds up to $5,000 through the City of Springfield’s Down Payment Assistance Program. But, the good thing is this money is in the form of a zero-interest loan without any payments and can be forgiven after a period of 10 years.
Eligibility Requirements
All applicants who are first-time homebuyers and have never owned a home before must meet the requirements for the City of Springfield Down Payment Assistance Program. Then, the total household income of applicants must not exceed 80% of their AMI. The applicant must also have completed a HUD approved homeowner or homebuyer course and send a copy to the City.
Property Guidelines
The applicant must live in the home that was purchased using funds from the City of Springfield’s Down Payment Assistance Program. However, it must not exceed $130,000 in purchase price and be within the program’s targeted area.
Income Limits
- 1-person household: $35,250
- 2-person household: $40,250
- 3-person household: $45,300
- 4-person household: $50,300
- 5-person household: $54,350
- 6-person household: $58,350
- 7-person household: $62,400
- 8-person household: $66,400
This programme is one we see in many states, but its different to the First-Time Homebuyer Assistance Programs in Mississippi, who does not have the Down Payment assistance.
Homeownership Assistance Program
Missouri’s Homeownership Assistance Program, City of Columbia, was established to assist income-eligible homebuyers in purchasing their first home.
Available Assistance
Qualifying applicants may receive either $10,000 or 10% of their purchase price under the Homeownership Assistance Program. But these funds are in the form of a 10-year, forgivable loan with zero interest. However, these funds can only be used to pay down the loan’s principal or reduce closing costs. Prepaid costs such as taxes and insurance cannot be covered.
Eligibility Requirements
The Homeownership Assistance program is only for first-time homebuyers. But, the exceptions to this rule include “displaced homemakers” or “single parents”. However, their annual household income cannot exceed 80% of the area median. Buyers must contribute at least $500 from their own resources to the purchase.
Property Guidelines
Property purchased using program funds must be the borrower’s primary residence during the 10-year affordability period. It must also be within the City of Columbia. However, it cannot be located in a floodplain area or on land that has been used for the disposal of hazardous or toxic wastes. Mobile homes are also not eligible. You must keep the property within the following price limits:
For existing homes:
- 1 bedroom; $159,000
- 2 bedrooms: $203,000
- 3 bedrooms: $246,000
- 4 bedrooms: $304,000
For new constructions:
- 1 bedroom: $224,000
- 2 bedrooms: $286,000
- 3 bedrooms: $347,000
- 4 bedrooms: $430,000
Income Limits
- 1-person household: $44,450
- 2-person household: $50,800
- 3-person household: $57,150
- 4-person household: $63,500
- 5-person household: $68,600
- 6-person household: $73,700
- 7-person household: $78,750
- 8-person household: $83,850
City of Columbia Homeownership Assistance Program
Missouri’s Homeownership Assistance Program assists eligible applicants in purchasing a safe and affordable home with down payment assistance and/or closing costs assistance
Available Assistance
Eligible applicants may receive as much as $10,000 or 10% of their purchase price, depending on which is lower. These funds are a 10-year, forgivable loan with zero interest. They can only be used to pay down the closing cost or reduce the loan’s principal. Program funds cannot cover prepaid costs like taxes or insurance.
If additional assistance is needed to meet lender and program underwriting requirements, the assistance may be increased to $10,000 or 10% of purchase price. To offset the cost of lead hazard reduction, an additional $500 grant is available.
Eligibility Requirements
The Homeownership Assistance Program is available to first-time homebuyers, displaced homemakers, and single parents. The income requirements for applicants must be at or below 80% of the local median income. Credit scores must also average at least 600. A homebuyer education program such as Pre-Purchase Homebuyers seminar or MoneySmart is required. Homebuyers with lower credit scores than 600 may be eligible for financial assistance by completing the MoneySmart program. All applicants must contribute $500 to the purchase of a home and have no more than $15,000 of readily available resources.
Property Guidelines
The home must be the borrower’s primary residence. It must also be located in the City of Columbia. Mobile homes are not eligible. You must keep your home within the following maximum 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
Income Limits
The household applying must earn at least 80% of the area’s 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
First Place Loan Program
The Missouri Housing Development Commission created the First Place Loan Program to assist first-time homebuyers with closing costs and down payments.
Available Assistance
Eligible applicants may receive as much as 4 percent of their first mortgage amount in assistance funds. This money can be used to cover their closing costs and/or down payment. These funds are available in the form of a second mortgage that is forgivable. The loan is not required to be repaid if the borrower remains in the house for at least 10 years. The mortgage’s value will decrease by 1/60 per month after the fifth year. It is then forgiven entirely.
Eligibility Requirements
To be eligible for the First Place Loan Program applicants must meet certain criteria. All applicants must be first-time buyers (people who haven’t owned or held principal interest in a house in the past three years), except for qualifying veterans and those purchasing homes in targeted areas. The program also requires that applicants meet certain credit and income requirements.
Property Guidelines
The home must be the applicant’s primary residence. It must also be occupied within 60 days of closing the loan. Single-family detached homes, semi-detached and duplex homes, condominiums, townhomes and manufactured homes with a permanent foundation are all eligible property types. Duplexes can be eligible provided that one unit is occupied by the owner and that they are not older than five years. All property must be outside the floodplain of 100 years. All properties must be within the following purchase price limits:
- Single Unit Non-Targeted: $248,098
- Single Unit Targeted: $303,231
- Two-Unit Non-Targeted: $317,655
- Two-Unit Targeted: $388,245
First Time Homebuyer Program
The First Time Homebuyer Program (FTHB) was created by the City of Blue Springs in collaboration with local mortgage lenders.
Available Assistance
Blue Springs offers funds to qualified people for closing cost assistance and down payment. The 50% Down Payment Assistance covers any down payment of up to $3,000 towards the purchase price of a house. In addition, the City of Blue Springs will cover reasonable closing costs. The assistance amount cannot exceed $3,000.
Eligibility Requirements
This program is available to first-time homebuyers, single parents, and displaced homeowners. Their household income must be at least 80% of the area median.
Income Limits
All applicants must have an annual income of at least 80 percent of the area median.
- 1-person household: $48,200
- 2-person household: $55,050
- 3-person household: $61,950
- 4-person household: $68,800
- 5-person household: $74,350
- 6-person household: $79,850
- 7-person household: $85,350
- 8-person household: $90,850
Missouri Housing Development Commission DPA Program
Missouri Housing Development Commission provides assistance funds to eligible applicants with the Cash Assistance Loan. This loan helps cover the down payment and other closing expenses. This loan is available to qualified borrowers to help them achieve homeownership and access affordable housing.
Available Assistance
First-time homebuyers who meet the criteria are eligible for a second mortgage at 4% of the loan amount. This can be used to pay the down payment or for closing costs. If the borrower remains in the home/loan for at least ten years, the second mortgage will be forgiven. After year 5, the second mortgage will decrease by 1/60 per month, until it is completely forgiven in year 10.
Next Step Program
The down payment is one of the biggest obstacles to homeownership. The Missouri Housing Development Commission created the Next Step Program to assist individuals in overcoming this obstacle.
Available Assistance
Eligible applicants may receive as much as 4% of their first mortgage amount in assistance funds under the Next Step Program. This amount can be used to pay a portion or all of the down payment and/or closing cost. This money is available in the form of a second mortgage that can be forgiven. The loan is not required to be repaid if the borrower remains in the house for at least 10 years. The mortgage’s value will decrease by 1/60 per month after the fifth year, to be then forgivable entirely.
Eligibility Requirements
Applicants must meet certain criteria to be eligible for the First Place Loan Program. All applicants must meet the income and credit score requirements of the program. The household income limit is based on the annual gross household income of all residents aged 18 and older who will be living in the house. This includes wages, overtime and bonuses, commissions and child support. It also includes earnings from a business, second job or investments.
Property Guidelines
The home must be the applicant’s primary residence. It must also be occupied within 60 days of closing the loan. Single-family detached homes, one half duplexes, semi-detached houses, condominiums and townhomes are all eligible property types. Duplexes can be eligible provided that one unit is occupied by the owner and that they are not older than five years. All property must be outside the 100-year flood zone. All properties must be within the program’s purchase price limits: $303,231 per unit and $388,245 per unit.
Income Limits
Kansas City MSA
- 1-2 person household: $89,760
- 3 plus person household: $104,720
St. Louis MSA
- 1-2 person household: $89,400
- 3 plus person household: $104,300
Columbia MSA
- 1-2 person household: $89,280
- 3 plus person household: $104,160
Jefferson City MSA
- 1-2 person household: $77,040
- 3 plus person household: $89,880
All other areas
- 1-2 person household: $75,840
- 3 plus person household: $88,480
Are you interested in the First-Time Homebuyer Assistance Programs in Montana?
