Homeownership Assistance Program (City of Columbia)

Homeownership Assistance Program (City of Columbia) is sponsored by City of Columbia, Missouri. The City of Columbia Homeownership Assistance Program provides up to $10,000 to eligible first-time homeowners, single parents, and displaced homemakers for down payment and closing costs. This assistance is a 10-year, no-interest loan that is forgiven after 10 years.

Homeownership Assistance Program - City of Columbia Missouri Homeownership Assistance Program The purpose of the Homeownership Assistance Program is to make homeownership more affordable for low-to-moderate income households through down payment and/or closing cost assistance to qualified households purchasing a home within the City Limits of Columbia.

Applications will only be considered when qualified buyers with properties are under contract. Applicants must be “first time home buyers” who meet the Department of Housing and Urban Development (HUD) income guidelines.

Exceptions to the first-time-homebuyer rule are: Displaced Home-maker: An adult who has not worked full time, full year in the labor force for a number of years, but during such years worked primarily to care for his/her home and family, and who is unemployed and experiencing difficulty in obtaining or upgrading employment Housing Programs Division – Administrative Guidelines opens PDF file Neighborly Portal Application How does the program work?

Through the 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 of $10,000-$20,000, may be provided in the form of a 10-year forgivable loan at 0% interest 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 principal amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase. Additional program information Application for assistance is made through your lender in cooperation with the City of Columbia’s Housing Programs Division.

Once you have met your lender’s requirements to get a home loan, have your loan officer contact Housing Programs staff at [email protected] create new email or 573. 874. 7288.

Buyers are required to complete Homeownership Counseling in accordance with HOME Regulations 92. 254(a)(3) from a HUD Certified Counseling Agency prior to executing a written agreement for assistance. There may be costs associated with counseling.

An Agency can be found via the following site: HUD Approved Housing Counseling Agencies Local HUD Approved Housing Counseling Agency: Love Columbia, 573-256-7662 Buyer(s) must have an average combined credit score not less than 600 (subject to change). Buyer(s) cannot have more than $25,000 in readily available resources unless the amount exceeding $25,000 is invested in the home.

Readily available resources are considered cash held in savings and checking accounts, stocks, bonds, Treasury bills, certificates of deposit, mutual funds, money market accounts, real estate other than primary residence, down payment cash gifts. Houses purchased under this program must be located within the Columbia city limits . Applicants must avoid flood plains to qualify.

What are the income limits? Current gross income limits by household size; effective June 1, 2026. What types of property are eligible?

The property can be a single or a multi-family (condominium) dwelling. Maximum purchase prices are as follows (effective December 1, 2025): New construction home – $284,000 City staff must inspect the entire property to determine that it meets the City’s property maintenance code. All deficiencies must be corrected prior to homeownership assistance funds being provided.

Houses built prior to January 1, 1978, may require a lead risk assessment if deteriorated paint exists. If the paint is determined to contain lead above HUD’s level of concern, lead hazard remediation and final clearance will be procured and covered with City funds. A $500 grant is available upon closing to help the buyer offset costs associated with lead hazard remediation; all costs over $500 must be paid by the buyer or seller.

Are there any other requirements? Prior to receiving city funds, the buyer is required to sign a Deed of Trust, Promissory Note, and Borrower’s Agreement to prevent the leasing, subleasing or selling of their home for a minimum of ten years. The Deed of Trust will be recorded at the Boone County Recorder’s Office.

If the property is sold or rented within the initial ten-year period, the assistance shall be repaid on a prorated basis that includes the balance of any unforgiven amount, less the monthly average amount forgiven for each month the home is occupied by the participant within the year the home is sold. What other programs are available?

Local lenders offer a number of loan packages–take the time needed to find the loan package that works best for you. You should also carefully read the informative brochure published by HUD, Don’t Be a Victim of Loan Fraud–Protect Yourself from Predatory Lenders opens PDF file . Additional Free education information can be found through the Freddie Mac Homebuyer U program: Freddie Mac Homebuyer U Course Where can I get more information?

Contact a loan officer at a local bank, savings and loan, mortgage company, credit union, or contact the Housing Programs Division: Telephone: 573. 874. 7288 (TTY: 800.

MOR.

ELAY) Email: [email protected] create new email 11 N 7th St, Columbia, MO 65201 The Fair Housing Act prohibits discrimination in housing because of race, color, national origin or ancestry, religion, sex (including gender identity and sexual orientation), familial status (including children under the age of 18 living with parents or legal custodians, pregnant persons and people securing custody of children under 18), and disability.

Contact the Columbia Human Rights Commission at 573. 874. 7488 (V/TTY) if you feel you have been discriminated against.

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