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. Funding comes from HUD Community Development Block Grant (CDBG).

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

City of Jefferson CDBG Down Payment Assistance Program is forgiven after 5 years, so a homebuyer 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.

City of Jefferson CDBG Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Includes those who have not owned a home in the past three years; displaced homemakers and single parents also qualify. A homebuyer education course is required, through eHome America online course plus one-on-one HUD-Certified Housing Counseling (local agency: Love Columbia). 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.

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.

City of Jefferson CDBG Down Payment Assistance Program can be used for Single Family. New construction is not eligible. Manufactured homes are not eligible.

City of Jefferson CDBG Down Payment Assistance Program serves homebuyers purchasing in Jefferson City, Missouri.

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