Buying a home is a significant milestone, but for many, the hurdle of saving up for a down payment can seem daunting. The good news is that down payment assistance programs are here to help! These programs are designed to bridge the gap between your savings and the down payment requirement, making homeownership more accessible than ever. Whether you’re a first-time buyer or looking to upgrade, understanding these assistance options can bring you one step closer to unlocking the door to your dream home.
MHDC- First Place
The Missouri Housing Development Commission (MHDC) was established in 1969. MHDC oversees financing for the rehabilitation and construction of affordable housing projects. Additionally, it facilitates home loans for eligible first-time buyers through a network of certified private mortgage lenders. Funding mechanisms include the sale of mortgage-backed securities and the issuance of tax-exempt bonds authorized by the Commission.
The First Place Program aids prospective first-time homebuyers and qualified Veterans in saving money by providing mortgage financing at interest rates lower than standard market rates. For those with limited savings, the program offers cash assistance that can be applied towards down payments and closing costs. Certified Lenders extend loans for qualifying properties across Missouri. All interest rates and allowable closing costs are set by MHDC with no minimum down payment or minimum loan amounts.
MHDC- Next Step
The Next Step Program provides an opportunity to prospective homebuyers who exceed the income limits of the First Place Program, whether they are first-time buyers or repeat purchasers. For those with limited savings, the program offers cash assistance that can be applied toward down payments and closing costs. Certified Lenders offer loans for eligible properties throughout Missouri. The MHDC determines all interest rates and permissible closing costs, with no requirements for minimum down payments or loan amounts.
City of Springfield Down Payment Assistance
This program assists first-time home buyers and certain displaced persons by providing down payment and closing cost assistance to purchase their primary residence. Funding is sourced from Federal Housing and Urban Development funds for households with incomes less than 80% of the Springfield Median Income, noting that income limits may change annually. Eligible buyers can receive a loan of up to $9,000, which is interest-free and requires no payments. This loan is deferred and forgiven over a ten-year period, provided the home remains the buyer’s primary residence. To participate, you must be pre-qualified for a first mortgage from an approved lender. Additionally, the home’s purchase price cannot exceed $150,000 and must be located within a designated target area.
Restore SGF Down Payment Assistance
Take advantage of Restore SGF Down Payment Assistance program, offering a $9,000 grant toward your dream home. Join in revitalizing Springfield’s historic areas by upgrading homes, fostering community connections, and enhancing property values. To be eligible for Down Payment Assistance, a borrower must meet several qualifications: Contribute $1,500 of their own money at the time of closing, have an income not exceeding 150% of the Area Median Income (AMI), be a first-time homebuyer or not have owned a home in the past three years, ensure the home’s sales price does not exceed $250,000 and purchase a home located in one of the five designated neighborhoods: Doling Park East, Fassnight, Grant Beach, Meador Park East, and Woodland Heights.
Great Southern Bank First Time Buyer Loan
Great Southern partners with external organizations to provide cash assistance for down payments and closing costs to first-time home buyers. Their program offers a 30-year fixed rate for Conventional, FHA, VA, or USDA loans. Participants must complete a home buyer education class and meet specific household income and purchase price requirements.
Flat Branch Home Loans Flex Founds
Discover the Flex Funds Program at Flat Branch, designed to ease the burden of saving for your dream home. This program offers up to $4,000 to help homebuyers achieve their goals. Available for first-time buyers within area median income limits, Flex Funds can be applied toward down payments or closing costs, paving the way to homeownership and making the journey a resounding success.
Now that you know about available Down Payment Assistance Programs, discover more about home loans by visiting our blog, Home Loan Options.