City of Columbia Homeownership Assistance Program

City of Columbia Homeownership Assistance Program is a forgivable loan for homebuyers in Columbia, Missouri, administered by City of Columbia Housing Programs Division (Housing and Neighborhood Services). The Homeownership Assistance Program makes homeownership more affordable for low-to-moderate income, first-time homebuyer households by providing down payment and/or closing cost assistance for the purchase of an existing single-family or condominium home within the Columbia city limits. Applications are only considered when a qualified buyer is under contract on a property. Assistance is provided through federal HOME funds. $10,000 to $20,000 in assistance provided as a 10-year forgivable loan at 0% interest, used for down payment and closing costs or to reduce the loan principal. A $500 grant is also available at closing toward lead hazard remediation if applicable. Funding comes from Federal HOME Investment Partnerships Program (HUD) funds administered by the City of Columbia.

City of Columbia Homeownership Assistance Program offers between $10,000 and $20,000 in assistance. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — City of Columbia Housing Programs Division (Housing and Neighborhood Services) determines any individual award.

City of Columbia Homeownership Assistance Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by If the property is sold or rented within the initial 10-year period, assistance is repaid on a prorated basis (balance of unforgiven amount). Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Columbia Homeownership Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. The program lists a minimum credit score of 600. A homebuyer education course is required. Must be a first-time homebuyer (exception for displaced homemakers) meeting HUD income guidelines. Buyer must contribute a minimum of $500 cash. Cannot hold more than $25,000 in readily available resources unless the excess is invested in the home. Property must pass City property maintenance code inspection; pre-1978 homes may require lead risk assessment. Must avoid flood plains. Applicant applies through their lender.

City of Columbia Homeownership Assistance Program sets its income limit as follows: HUD income guidelines by household size (effective April 1, 2025): 1 person $59,300; 2 $67,750; 3 $76,200; 4 $84,650; 5 $91,450; 6 $98,200; 7 $105,000; 8 $111,750. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of Columbia Homeownership Assistance Program caps the purchase price at $249,000.

City of Columbia Homeownership Assistance Program serves homebuyers purchasing in Columbia, Missouri. The program gives priority to designated target areas, so the address matters as well as the county.

Applications for City of Columbia Homeownership Assistance Program go through City of Columbia Housing Programs Division (Housing and Neighborhood Services), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.