City of Springfield Down Payment Assistance Program

City of Springfield Down Payment Assistance Program is a forgivable loan for homebuyers in Springfield, Ohio, administered by City of Springfield Office of Housing. The City of Springfield Office of Housing provides down payment and closing cost assistance ranging from $7,500 to $35,000 to income-qualified, first-time homebuyers purchasing a home in the City of Springfield. Assistance is structured as a 0% interest deferred-payment loan that is forgiven over ten years of continued owner-occupancy: no forgiveness in the first 5 years, then one-fifth forgiven each year beginning after the 6th full year, with the full loan forgiven at 10 years. 0% interest deferred, forgivable loan of $7,500-$35,000 for down payment and closing costs; fully forgiven after 10 years of owner-occupancy. Funding comes from HUD federal entitlement funds (City of Springfield).

City of Springfield Down Payment Assistance Program offers between $7,500 and $35,000 in assistance. Amounts are the program's published maximums, not an offer — City of Springfield Office of Housing determines any individual award.

City of Springfield Down Payment Assistance Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or cessation of owner-occupancy before the loan is fully forgiven (declining balance, one-fifth forgiven per year beginning after the 6th year of owner-occupancy). The assistance is recorded in subordinate position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Springfield Down Payment 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. A homebuyer education course is required. Home must be located within the City of Springfield and be the applicant's primary residence. First-time homebuyer required. Applicant must contribute a minimum of 1% of own funds toward the purchase. Loan-to-value ratio must be 103% or less and debt-to-income ratio 45% or less (case-by-case exceptions possible). Must complete homebuyer education from a HUD-certified counselor at a HUD-approved housing counseling agency. No forgiveness during first 5 years; one-fifth forgiven annually beginning after year 6.

City of Springfield Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Occupant household income cannot exceed 80% of Area Median Income, determined annually by HUD. 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 Springfield Down Payment Assistance Program serves homebuyers purchasing in Springfield, Ohio.

Applications for City of Springfield Down Payment Assistance Program go through City of Springfield Office of Housing, 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.