Missouri Down Payment Assistance

Well known for farming, pizza, and BBQ, Missouri can be a great place to live. Rising real estate prices can make home ownership in Missouri difficult, however. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants.

If you're thinking about purchasing a home in Missouri, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!

First Place Loan Program with Cash Assistance

Qualified individuals in Missouri have the option to get a First Place Loan with or without Cash Assistance.

Those who opt to get a loan with Cash Assistance will receive as much as 4% of the first mortgage amount in assistance funds to help with the down payment and closing costs. This is offered as a second mortgage that can be forgiven providing that the borrower uses the property as his or her primary residence for at least ten years. The loan is forgiven at a rate of 1/60 every month starting after year 5. Using this rate, the loan is forgiven entirely by year 10.

The lender is allowed to charge the borrower standard closing costs, but junk fees are not allowed.

Income limits apply for this program. Purchase price limits also apply. As of 2020, these limits are as follows:

  • Single Family Houses in Target Areas - $360,067
  • Single Family Houses in Non-Target Areas - $294,600
  • Duplexes in Target Areas - $377,219

Next Step Cash Assistance Loan

The Next Step Cash Assistance loan offers assistance funds to help with the down payment and closing costs.

Qualified individuals can access 4% of their first mortgage amount as assistance funds in the form of a second mortgage. This second mortgage is forgiven entirely as long as the applicants use the property as their primary residence for no less than ten years.

The lender is allowed to charge the borrower standard closing costs, but junk fees are not allowed.

As of 2020, the sales price limits are $360,067 for single family houses and $461,046 for duplexes. Income limits, which vary depending on location and household size, also apply.

CAASTLC Down Payment Assistance

The Community Action Agency of St. Louis County, Inc. (CAASTLC) offers the following down payment assistance loans:

  • For those in St. Louis County, a zero-interest loan of $3,000 with deferred payments;
  • For those in Florissant, a zero-interest loan of $3,500 with a five-year term that can be forgiven;
  • For those in St. Charles City and/or County or in O’Fallon, a zero-interest loan of $5,000 with deferred payments.

For the above loans with deferred payment, the loan amount becomes due when the property has been sold or transferred.

For all of the above, applicants must finish a homebuying course as well as individual homeownership counseling.

Applicants must also be able to put down at least $1,000 from their own assets towards the purchase.

Income limits apply.

Individual Development Account

An Individual Development Account (IDA) is a specialty account offered by the Community Action Agency of St. Louis County, Inc. (CAASTLC). It is a savings account with matching deposits meant to be put towards long-term financial goals, including a home purchase. It can also be used for starting a business or paying for tuition.

The account owner must put a minimum of $10 in the account every month.

Depending on which plan the account owner has with CAASTLC, their deposits will be matched (for up to $2,000) dollar for dollar or dollar for two dollars for up to two years.

The amount that the account owner saves as well as the matched funds can then be put towards their financial goal.

Interested individuals must be in the program for no less than six months and pass the required educational class.

Income limits will also apply.

Columbia Homeownership Assistance Program

For low-to-moderate income households looking to purchase a home in the city of Columbia, this program offers as much as 10% of the purchase price of a house, or $10,000, whichever is the smaller amount. This amount can be used to help pay for the down payment, closing costs or for a principal reduction of the first mortgage.

Assistance is offered in the form of zero-interest forgivable loan with a ten-year term.

Only first-time homebuyers, displaced home-makers, or single parents can qualify for this program. Applicants must be able to put down a minimum of $500 towards the purchase, but cannot have more than $15,000 in liquid assets. Homebuyer education will be required. As of 2020, the minimum combined credit score for the program is 600, but lower scores may be accepted in the right circumstances.

The property must be a single or multi-family structure in the city limits of Columbia, but not in a flood plain. An inspection must be done to confirm the structure is up to code. Any deficiencies must be corrected prior to funding. Purchase price limits will apply.

In the event that the property was built before 1978 and has deteriorated paint, a lead risk assessment may be required. If lead paint is found, it must be remediated. A $500 grant will be made available to help with this cost, but any cost higher than that must be paid either by the borrower or the seller.

Applicants must use the property as their primary residence for at least ten years. If they rent, sell, or otherwise stop using the property as their primary residence in the ten-year period, any unforgiven loan amount will need to be repaid.

Springfield Down Payment Assistance

For first-time homebuyers or select displaced individuals in Springfield, as much as $5,000 can be offered as assistance funds. This is a forgivable 10-year loan with no interest or monthly payments.

As of 2020, the maximum sales price allowed is $130,000.

Applicants will need to be pre-qualified for a first mortgage.

A buyer’s guide and lender’s guide are both available for more information on this program.

For applicants, household income limits apply, which as of 2020 are as follows:

  • 1-person household: $36,600
  • 2-person household: $41,800
  • 3-person household: $47,050
  • 4-person household: $52,250
  • 5-person household: $56,450
  • 6-person household: $60,650
  • 7-person household: $64,800
  • 8-person household: $69,000

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