Down Payment Assistance

Note: This program is temporarily suspended due to lack of funding. Downpayment assistance will be offered again when funding becomes available.

The City of Springfield has limited funding for down payment and/or closing cost assistance for qualified 1st 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 1st 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.

These income limits are subject to change by HUD, and might vary somewhat at the actual time of your application.

In addition, anyone who will be residing in the house would need to be a 1st time home buyer, as defined by HUD. This definition includes some individuals who might have owned a house with a spouse, but would not be considered a displaced homemaker or single parent. It could also include those who currently own dwellings that are not permanently affixed to a permanent foundation or are not in compliance with applicable codes and cannot be brought into compliance for less than the cost of constructing a permanent structure.

Loan Requirements
The DPA loans offered by the City of Springfield will be at 0% interest, with no payments due during the term of the loan, and the balance of the loan to be repaid at the time the original borrower ceases to occupy the house as his or her primary residence. The loans would be contingent upon a satisfactory appraisal and inspection, and an acceptable credit record for the borrower. Applicants will also need to complete training in home buyer and homeowner education. Although loans offered by lenders are available throughout Springfield, the DPA loans are available for housing in specific program boundaries.

The city will loan 10% of the purchase price plus pay reasonable closing cost and prepaid expenses, with the total loan not to exceed $7,000 per loan.

Note: Borrower must qualify for a conforming, A-paper home loan (i.e. conventional, FHA, or VA). The city cannot offer DPA assistance on a sub-prime loan.