City of Springfield Down Payment Assistance

A typical barrier that many prospective homebuyers face is being able to save up the funds to make a sufficient down payment or pay closing costs. The City of Springfield’s Office of Housing helps overcome this obstacle with its Down Payment Assistance Program. 

Available Assistance 
The City of Springfield’s Down Payment Assistance Program helps income-eligible homebuyers by providing a zero-interest loan of $4,000 that is full-forgiven in 5 years. These funds may be put toward the down payment or closing costs and are dispersed at closing. 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. 


Eligibility Requirements 
To be considered eligible, applicants must have a household income at or under 80% of the area median income, as determined annually by HUD. They are required to contribute at least 1% of the sale price toward the purchase from their own funds, and meet other underwriting criteria (Maximum LTV ratio is 103%, and debt-to-income ratio must fall under 45%. All applicants must also attend and complete a homebuyer education program from a HUD-certified housing counselor at a HUD-approved housing counseling agency.  

Any home purchased with program funds must be located in the City of Springfield and must serve as the primary residence for the applicant.  


Income Limits 
1-person household: $47,850 
2-person household: $54,650, 
3-person household: $61,500 
4-person household: $68,300 
5-person household: $73,800 
6-person household: $79,250 
7-person household: $84,700 
8-person household: $90,200 


*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but states and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.       


Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information.