First Time Home Buyer Programs in Missouri
Are you thinking of buying your first home in Missouri? Would you like a free gift of money to help you purchase that first home? If you answered yes to these two questions, there is great news for you. The state of Missouri provides free grant money for its residents who are first time home buyers and need help with the down payment and closing costs. This money comes in the form of state grants. This is free funding that shouldn’t be passed up! The grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the first time home buyer grant programs that the State of Missouri provides.
Missouri First Time Home Buyer Grant Programs
The agency in Missouri that provides assistance to first time home buyers is The Missouri Housing Development Commission. They have one first time home buyer grant available: First Place Loan Program. You can receive a cash assistance grant of up to 3%. To find out more about this grant, please visit the Missouri Housing Development Commission website page specifically for this grant program. You can get there by going to Missouri first time home buyer grants.
Cash Assistance Loan (CAL) provides cash assistance to first-time home buyers for down payment and closing costs.
Helps enable first-time home buyers in need of down payment and closing cost assistance.
Qualified first-time home buyers are eligible to receive a second mortgage of 3% of the loan amount to be used for down payment and closing costs.
The second mortgage is a five-year, diminishing loan at 0% interest.
The second mortgage is forgiven after five years of occupancy by the owner and monthly payments are not required.
No junk fees are allowed. The lender may charge standard closing costs
Here is the contact information for the Missouri Housing Development Commission:
MHDC Kansas City
3435 Broadway St
Kansas City, MO 64111
Phone: (816) 759-6600
MHDC St. Louis
4625 Lindell, Suite 300
St. Louis, MO 63108
Phone: (314) 877-1350
Local First Time Home Buyer Grants Throughout Missouri
There are also these local first time home buyer programs:
Columbia Enterprise Development Corporation (EDC) Home Ownership Assistance Program (HOP) (573) 874-7239
“This program is designed to help low-to-moderate income families purchase and occupy a home in the city limits of Columbia. Applicants must be “first time home buyers” who meet the Department of Housing and Urban Development (HUD) income guidelines below. Exceptions to the first-time-homebuyer rule are “displaced home-makers” and “single parents.”
How does the program work?
Through the normal process of buying a home, low- to moderate-income families may not have adequate funds for the down payment and other up-front loan closing costs. Assistance up to $5,000 or 5% of the purchase price, whichever is less, can be provided in the form of a 5 year forgivable loan to assist home buyers in purchasing an existing home. These funds are only to be used for down payment and closing costs (prepaid costs such as taxes and insurance are not eligible), or to reduce the principle amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase.”
Columbia Home Investment Partnership Program (HIPP) (573) 874-7239
“Participating jurisdictions may choose among a broad range of eligible activities, using HOME funds to provide home purchase or rehabilitation financing assistance to eligible homeowners and new homebuyers; build or rehabilitate housing for rent or ownership; or for “other reasonable and necessary expenses related to the development of non-luxury housing,” including site acquisition or improvement, demolition of dilapidated housing to make way for HOME-assisted development, and payment of relocation expenses. PJs may use HOME funds to provide tenant-based rental assistance contracts of up to 2 years if such activity is consistent with their Consolidated Plan and justified under local market conditions. This assistance may be renewed. Up to 10 percent of the PJ’s annual allocation may be used for program planning and administration.”
“The City of Lee’s Summit provides funds not to exceed $3,000.00 for qualified individuals and families with an annual combined income at 80% or less than the median income adjusted for household size as determined by HUD for Jackson County (See Income Limits table on Page 5), to be disbursed as follows:
1. Down Payment Assistance
The City will fund 50% of any down payment up to $3,000 toward the purchase price of a home; and/or
2. Closing Costs Assistance
The City will fund reasonable closing costs normally associated with the purchase of the home (not to exceed $3,000); and/or
3. Combination of 1 and 2
Total not to exceed $3,000.
The grant amount is paid directly to the mortgage lender or the title company at closing. Only qualified borrowers who are purchasing a residential housing unit within the corporate limits of Lee’s Summit to be used as the borrowers’ primary residence are eligible for this program.”
Springfield first time homebuyer downpayment assistance (417) 864.1593
“The City of Springfield has limited funding for down payment and/or closing cost assistance for qualified first time home buyers. The funds for this program come from the Department of Housing and Urban Development (HUD), with assistance limited to borrowers whose income is 80% or less of Springfield’s median income. As a first step to see if you might be eligible for this assistance, find your total household size in the top row of the table. Your total gross household income would need to be at or below 80% of median income for the Springfield area, as indicated by the income limit directly beside the applicable household size. The income ceilings in effect at this time are:found here”
“First Place Loan program is a homebuyer program that provides a pool of money at below-market interest rates that lenders can access to provide loans to first-time homebuyers in the state of Missouri. One part of the program also provides down payment and closing cost assistance. These loans are 30-year, fixed-rate, first mortgages. MHDC releases funds periodically throughout the year.”
“These programs include financial assistance for closing costs/down payment in the form of
low interest rate loans, forgivable loans or grants. These programs may be offered
through local non-profit agencies.
The State of Missouri has below market interest rate loans that are provided through
approved lenders. A list of approved lenders can be found in Appendix A. In order to
qualify for some of the programs, individuals or families must be first time homebuyers or
have not owned a home in the last three years. Most of the loans and financial assistance
programs have income guidelines.”
“The 1st HOME program is a zero percent interest down payment and closing cost loan program for low- to moderate-income home buyers purchasing their first home in St. Louis County.
In an effort to significantly increase the ability of first-time low- and moderate-income homebuyers to purchase a home, the St. Louis County Office of Community Development makes zero percent down payment and closing cost funds available to these homebuyers.
The second mortgage loan is forgivable over a period of five years. Borrowers will be required to execute a Note and recorded Deed of Trust to secure the second mortgage loan.”
St. Louis Grant Down Payment Assistance Program (DPA) (314) 533-0600
“IHDA allocates funds to a network of partners across the state to administer a number of programs to help Illinois first-time homebuyers attain homeownership affordably. Homebuyers can receive:
- Down payment and closing cost assistance
- Down payment, closing costs with funds to rehabilitate their new home; and
- Subordinate loansFunding for this assistance comes from two resources:
- HOME Investment Partnerships Program (HOME)
- Illinois Affordable Housing Trust Fund program
Down Payment and Closing Cost Assistance
To help potential buyers, the Illinois Affordable Housing Trust Fund program offers low- and very low-income individuals help with down payment and closing cost assistance. Assistance is available in the form of a grant or a loan.
Households earning at or below 50 percent of the area median income are eligible for a maximum grant amount of $5,000. Households earning between 51 percent and 80 percent of the area median income (AMI) are eligible for a maximum grant of $3,000. Grants are forgiven monthly over a five-year recapture period.”
St. Louis Home Buyers Assistance Program (HAP) (314) 622-3400
“Homebuyer Assistance Program provides funds for a down payment and closing costs to eligible clients to purchase homes in eligible areas of St. Clair County. Last year, this program helped 37 eligible households purchase homes. Homebuyer counseling is required. For more information and required Housing Counseling, call Clearpoint Financial Solutions (tollfree) at 1-877-877-1995.”
St. Peters Home Ownership Program (HOP) (636) 477-6600
“CDBG Downpayment Programs
Maintaining our neighborhoods and helping our residents are top priorities for the City of St. Peters. Community Development Block Grants (CDBG) have been instrumental in helping us achieve these goals.
CDBG funding comes from the U.S. Department of Housing and Urban Development for the purpose of helping low-income and moderate-income households. St. Peters administers CDBG funding for several programs:
St. Peters Home Ownership Program: Gives qualified residents assistance in the form of a five-year forgivable loan for up to $5,000.00. After five years, the loan is forgiven if the homeowner continues to live in and maintain the property. Funds are available on a limited basis.
St. Peters Home Help Program: Helps low-income to moderate-income homeowners rehabilitate their homes through a $5,000.00 forgivable loan. After five years, the loan is forgiven if the homeowner continues to live in and maintain the property. Funds are available on a limited basis.”
St.Louis International Institute Saint Louis IDA Home Purchase (IDA) (314) 773-9090