Purpose:

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

Assistance:

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.

Repayment:

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.

Eligibility:

• 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

• 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):

The program is available city-wide.