If you live in certain parts of Springfield’s Zone 1 or Zone 2, the city of Springfield’s Planning and Development department wants to work with you on a new down-payment assistance program.
The program is for income-qualified home buyers and will provide a loan of up to $5,000 for closing costs on a home that is $130,000 or less. The only neighborhoods eligible for the program are: Bissett, Westside, Heart of the Westside, West Central, Tom Watkins, Grant Beach, Woodland Heights, Doling, Midtown, Weller and Robberson.
The program can also be used by non-first-time home buyers if they are single parents or are “displaced homemakers” under federal guidelines.
The program is funded with U.S. Department of Housing and Urban Development funds. The loan is a 10-year zero-interest rate loan that requires no monthly payments unless the home is no longer the buyer’s primary home.
After five years, the loan amount if cut in half. The amount owed then reduces monthly over the next five years until there is no longer an obligation to pay on the loan after 10 years.
“We encourage any first-time homebuyer looking to buy a home in the qualified area to apply,” Community Development Loan Officer Bob Jones said in a statement. “We expect to fund about 20 loans at $5,000 each. Borrowers will be placed in a pool of income-qualified applicants. When the buyer has a signed purchase contract, funding will be reserved until the remaining underwriting for their home loan is complete.”
There are income limits based on household size:
- 1-person = $33,600
- 2 -person = $38,400
- 3-person = $43,200
- 4-person = $48,000
- 5-person = $51,850
- 6-person = $55,700
- 7-person = $59,550
- 8-person = $63,400
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