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City of Jefferson CDBG Down Payment Assistance Program

City of Jefferson, Department of Planning & Protective Services, Neighborhood Services Division · Jefferson City, Missouri

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Assistance

$5,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is City of Jefferson CDBG Down Payment Assistance Program?

City of Jefferson CDBG Down Payment Assistance Program is a forgivable loan for homebuyers in Jefferson City, Missouri, administered by City of Jefferson, Department of Planning & Protective Services, Neighborhood Services Division.

  • The City of Jefferson's CDBG Down Payment Assistance Program provides low-to-moderate income first-time homebuyers with up to $5,000 in a zero-interest, deferred forgivable loan toward down payment and closing costs, plus up to $500 for lead hazard reduction. The loan is secured by a deed of trust and forgiven after the buyer remains in the home for five years. Funds are awarded first-come, first-served and applications must be filed at least 30 days before closing.
  • Up to $5,000 toward down payment/closing costs.
  • Zero-interest forgivable loan.
  • Forgiven after 5 years of owner-occupancy.
  • Additional $500 for lead hazard reduction.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD Community Development Block Grant (CDBG).

How much assistance does it provide?

City of Jefferson CDBG Down Payment Assistance Program offers between $5,000 and $5,500 in assistance, depending on the award tier a buyer qualifies under.

  • Award tiers: Base assistance up to $5,000; an additional $500 may be provided to assist with lead hazard reduction.
  • 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 Jefferson, Department of Planning & Protective Services, Neighborhood Services Division determines any individual award.

Do you have to pay it back?

City of Jefferson CDBG Down Payment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Loan secured by Promissory Note and Deed of Trust; forgiven if owner remains in property for five years; lien released after the 5-year term.
  • The assistance is recorded in second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Jefferson CDBG Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Includes those who have not owned a home in the past three years; displaced homemakers and single parents also qualify
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through eHome America online course plus one-on-one HUD-Certified Housing Counseling (local agency: Love Columbia)
  • DRAFT (dpa-gap-finder 2026-06-15): pending review. The program's main CDBG webpage noted at review that it was 'not accepting new applications' even though a dated 2026 application packet with current income limits is published; verify current intake status with Neighborhood Services before referring.

The program excludes

  • Manufactured homes
  • New construction
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of Jefferson CDBG Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • 2026 HUD income limits by household: 1-person $59,100; 2 $67,550; 3 $76,000; 4 $84,400; 5 $91,200. All household occupants over 18 counted.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Jefferson CDBG Down Payment Assistance Program can be used for Single Family.

  • New construction is not eligible.
  • Manufactured homes are not eligible.

Where does it apply?

City of Jefferson CDBG Down Payment Assistance Program is a federal program, so it is not limited to Missouri.

How do you apply?

Applications for City of Jefferson CDBG Down Payment Assistance Program go through City of Jefferson, Department of Planning & Protective Services, Neighborhood Services Division, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through eHome America online course plus one-on-one HUD-Certified Housing Counseling (local agency: Love Columbia).

  2. Contact City of Jefferson, Department of Planning & Protective Services, Neighborhood Services Division to reserve funds

    Funds are reserved through First-come, first-served to eligible completed applications; application must be submitted at least 30 days prior to closing, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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