Home Ownership Assistance Program

Presentation of Application Process - Realtors (Power Point)

Home ownership information for people with disabilities.

Lender Information

This program is designed to help low-to-moderate income families purchase and occupy a home in the city limits of Columbia. Program Guidelines

Who is eligible?

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.” 

Definitions:  A First Time Home Buyer is an individual and his/her spouse who have not owned a home for three years. A Displaced Homemaker is an adult who has not worked full time, full year in the labor force for a number of years, but during such years worked primarily to care for his/her home and family, and who is unemployed and experiencing difficulty in obtaining or upgrading employment.  A Single Parent is an individual who is unmarried or legally separated from a spouse and who has one or more minor children in their care and custody, or who is pregnant.

Current income limits are as follows:

*One-person, non-elderly, non-disabled house-holds, (Single person who is not disabled nor over the age of 62) with no other related family members (lives alone at time of purchase), whose income is above 60% of the median family income (75% of the limits indicated above). If gross household income is between $26,775 and $35,700, applicant will be eligible to buy a home only within the central City area bounded by Stadium, Old 63, Business Loop 70, and Broadway. (See Map of Central City)

How does the program work?

Through the normal 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 $5,000 or 5% of the purchase price, whichever is less, can be provided in the form of a 5 year forgivable loan 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.

Application for assistance is made through your lender in cooperation with the City of Columbia Planning and Development.  Once you have met your lender’s requirements to get a home loan, have your loan officer contact Planning and Development at (573) 874-7239.

Buyers are required to attend a home buyer education program, such as “ Pre-Purchase Home Buyer's 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 home-ownership attractive and affordable.  They can also refer buyers to the appropriate credit and home buyer education programs offered throughout Columbia.

In cases where additional assistance is required to meet lender or program underwriting requirements, the City may increase assistance to a maximum of $10,000 or 10% of the purchase price, whichever is less, in order to fill a financing gap.  A deed of trust will be required where City assistance exceeds $5,000, and loans will be forgiven over ten years. 

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.  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, must have an inspection to determine if deteriorated paint exists, and in certain situations, samples of deteriorated paint and bare soil may be taken and sent to a lab for analysis.  If the paint is determined to contain lead above HUD’s level of concern, paint stabilization of deteriorated surfaces by trained personnel is required prior to homeownership assistance funds being provided. You are also restricted from moving into the home until it is determined that identified lead hazards are corrected and a clearance of the unit is achieved. A $500 grant is available to the buyer to help offset costs associated with lead hazard reduction; all costs over $500 must be paid by the buyer or seller.

Are there any other requirements?

Prior to receiving city funds, and depending upon how much assistance the buyer receives, he/she is required to sign an Affidavit, Promissory Note, and Borrower's Agreement to prevent the leasing, subleasing or selling of their home for a minimum of five years.  A deed of trust will be required where City assistance exceeds $5,000.  The Affidavit and Deed of Trust will be recorded at the Boone County Recorder’s Office.  Funds provided for down payment and closing cost assistance shall be repaid on a prorated basis if the property is sold or ceases to be owner-occupied before the end of the affordability period.

The value of the property to be purchased cannot exceed $200,160.

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 Department of Planning & Development on the 2nd floor of City Hall at 701 E. Broadway. 

Telephone: (573)874-7239 (TTY: 1-800-MOR-ELAY)
Fax: (573)874-7546
E-mail: planning@gocolumbiamo.com.

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 18 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.