Downpayment Assistance Program

Down Payment Assistance

Access to homeownership for many households can be an impediment for many desiring to acquire their own home. A critical barrier for many prospective homebuyers is an inability to provide a sufficient down payment or pay closing costs to purchase a home. The Office of Housing makes homebuyer assistance loans available to help expand home ownership opportunities for low and moderate-income households.

Program Description: Down Payment Assistance Program         


Assist low- and moderate-income households to become homeowners in the City of Springfield.


Conditions of Funding:

Zero percent interest forgivable loan of $4,000, fully forgiven after 5 years.

The owner-occupant must use the home as the primary place of residence and remain in the home for a minimum of five years.


Pro-rated loan repayment is required if the homeowner sells, refinances, transfers title to the property; or if the home no longer serves as the owner’s primary residence.

Eligible Costs:

Program funds may be applied to down payment or closing costs and are dispersed at closing.








  • Household income of the occupant household cannot exceed 80% of the Area Median Income (AMI) as determined annually by the U.S. Department of Housing and Urban Development. The maximum incomes as of July 1, 2021 are:

               Maximum Household Income

1 Person


5 Person


2 Person


6 Person


3 Person


7 Person


4 Person


8 Person


  • Contribute a minimum of 1% of own funds toward purchase of the property
  • Successfully complete a homebuyer education program from a HUD-certified housing counselor at a HUD-approved housing counseling agency.
  • Meet City underwriting standards, which include: 1) Maximum loan-to-value is subject to lender program requirements, but may not exceed 103%; 2) Qualifying debt-to-income ratio may not exceed 45% (exceptions on a case-by-case basis)
  • Landlord training course required for properties containing two or more units
  • Current on City of Springfield taxes, fees, fines or municipal liens.


Additional Requirements:








Target Area:

This program is funded by multiple sources. Households with income below 80% AMI must meet the following additional requirements (imposed by the funding source):

  • Property must meet all applicable State & local housing quality standards
  • If income is 60-80% AMI, housing expense-to-debt ratio must be 25% or above
  • Price may not exceed the maximum Purchase Price (effective July 2021):


1 unit

2 unit

3 unit

4 unit

Existing home





New Construction






The program is available city-wide.

Click on this link to download a Down Payment Assistance Application

Page last updated:  Thursday, July 22, 2021 11:30 am