** Important Update: In line with recent CDC recommendations related to the COVID-19 virus, in-person Home Buyer Education Classes are suspended until further notice. For individuals needing a home buyer certification please utilize the attached link to complete the FREE “Credit Smart” Homebuyer-U course offered by Freddie Mac.
This program is designed to help low-to-moderate income families purchase and occupy a home in the city limits of Columbia. Applicants must be “first time home buyers” who meet the Department of Housing and Urban Development (HUD) income guidelines below. Exceptions to the first-time-homebuyer rule are “displaced home-makers” and “single parents.”
- CDBG and HOME Administrative Guidelines (Updated 2020)
- Current Income Limits (updated July 1, 2020)
- Maximum Purchase Price
- Application Form
- Data Sheet
- Money Smart Flyer 2020
- Information for Lenders
- Presentation to Board of Realtors
How does the program work?
Through the process of buying a home, low- to moderate-income families may not have adequate funds for the down payment and other up-front loan closing costs. Assistance up to $10,000 or 10% of the purchase price, whichever is less, can be provided in the form of a 10-year forgivable loan at 0% interest to assist home buyers in purchasing an existing home. These funds are only to be used for down payment and closing costs (prepaid costs such as taxes and insurance are not eligible), or to reduce the principle amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase.
Additional Program Information
Application for assistance is made through your lender in cooperation with the City of Columbia’s Community Development Department. Once you have met your lender’s requirements to get a home loan, have your loan officer contact Community Development at 573.874.7239.
Buyers are required to attend a homebuyer education program, such as “Pre-Purchase Homebuyers Seminar” or “MoneySmart“, designed to help them understand their credit history and the process of buying and paying for a home. Local lenders are partners in this program. Some lenders offer home loans at terms that make homeownership attractive and affordable. They can also refer buyers to the appropriate credit and homebuyer education programs offered throughout Columbia. Register for the Pre-Purchase Homebuyers Seminar online.
Buyer(s) must have an average combined credit score not less than 600 (subject to change). Completion of MoneySmart or other approved class may be accepted for scores lower than the required minimum.
Buyer(s) cannot have more than $15,000 in readily available resources.
Where can I buy a house?
Houses purchased under this program must be located within the Columbia city limits. Applicants must avoid flood plains to qualify.
What types of property are eligible?
The property can be a single or a multi-family (condominium) dwelling– view maximum allowable purchase prices. City staff must inspect the entire property to determine that it meets the City’s property maintenance code. All deficiencies must be corrected prior to homeownership assistance funds being provided.
Houses built prior to January 1, 1978, may require a lead risk assessment if deteriorated paint exists. If the paint is determined to contain lead above HUD’s level of concern, lead hazard remediation and final clearance will be procured and covered with City funds. A $500 grant is available upon closing to help the buyer offset costs associated with lead hazard remediation; all costs over $500 must be paid by the buyer or seller.
Are there any other requirements?
Prior to receiving city funds, the buyer is required to sign a Deed of Trust, Promissory Note, and Borrower’s Agreement to prevent the leasing, subleasing or selling of their home for a minimum of ten years. The Deed of Trust will be recorded at the Boone County Recorder’s Office. If the property is sold or rented within the initial ten-year period, the assistance shall be repaid on a prorated basis that includes the balance of any unforgiven amount, less the monthly average amount forgiven for each month the home is occupied by the participant within the year the home is sold.
What other programs are available?
Local lenders offer a number of loan packages–take the time needed to find the loan package that works best for you. You should also carefully read the informative brochure published by HUD, Don’t Be a Victim of Loan Fraud–Protect Yourself from Predatory Lenders.
Where can I get more information?
Contact a loan officer at a local bank, savings and loan, mortgage company, or credit union, or the Community Development Department at 500 E. Walnut St., Ste. 108.
Telephone: 573.874.7288 (TTY: 800.MOR.ELAY)
Fair Housing in Columbia
The Fair Housing Act prohibits discrimination in housing because of race or color, national origin or ancestry, religion, sex, familial status (including children under the age of 8 living with parents or legal custodians, pregnant women and people securing custody of children under 18), handicap (disability), marital status, or sexual orientation.
Contact the Columbia Human Rights Commission at 573.874.7488 (V/TTY) if you feel you have been discriminated against.