Down Payment Assistance in Springfield, MO

Who qualifies

• First-time homebuyer (or no home ownership in past 3 years)
• Household income above 81% and below 150% of Area Median Income
• Buying a home priced at or under $250,000
• Buying in one of 5 designated Springfield neighborhoods (see map below)
• Completes a first-time homebuyer education course
• Contributes at least $2,000 of own funds at closing

Worth knowing

• No minimum credit score required. This is unusual and powerful — most DPAs require 620+. RestoreSGF allows manual underwriting.
• Stay 5 years → grant is forgiven. Sell sooner → you repay it.
• About 50 grants per year funded — first come, first served.

Catch

The neighborhood restriction is strict, and the $250,000 price cap limits options. But for buyers in one of the 5 neighborhoods, this is the most generous program in Springfield.

Ask About RestoreSGF →

Who qualifies

• First-time homebuyer (or qualifying displaced person, single parent, or displaced homemaker)
• Household income at or below 80% of Springfield Median Income
• Buying a home priced at or under $214,000
• Property is anywhere within Springfield city limits
• Pre-qualified for a first mortgage (FHA, VA, or conventional)

Worth knowing

• The "loan" is forgiven over 10 years as long as it remains your primary residence. Stay 10 years → owe nothing. Ever.
• No neighborhood restriction — anywhere within Springfield city limits qualifies.
• Income limits change annually based on HUD data.

Catch

The $214,000 price cap is tight in today's market. Income limits are stricter than RestoreSGF. But for buyers earning under ~80% AMI, this is excellent relief — and unlike RestoreSGF, there's no neighborhood requirement.

Ask About City of Springfield DPA →

Who qualifies

Habitat works with families willing to invest "sweat equity" (volunteer hours) and demonstrate need plus ability to pay an affordable mortgage. They serve buyers who often don't qualify for traditional financing.

Worth knowing

• This is a separate path from the other programs on this page — Habitat builds or renovates the home and sells it directly to qualifying families.
• Application and process are run entirely through Habitat directly.

How to apply

Habitat manages their own applications. Call them at 417-829-4001 or visit Habitat for Humanity of Springfield directly.

If you'd like our buyer team to walk through whether Habitat might be a better fit than a traditional purchase plus DPA, we're happy to talk it through with you first.

Talk to Our Buyer Team →

Who qualifies

• First-time homebuyer OR a qualified veteran
• Repeat buyers may qualify if buying in a designated targeted area
• Minimum credit score: 640 (680 for higher debt-to-income scenarios)
• Debt-to-income ratio: 45% or less (up to 50% for FHA/government-backed with 680+ credit)
• Within MHDC income limits (varies by Missouri county and household size)
• Completes a homebuyer education course

Two ways to use it

With Cash Assistance Loan (CAL): Up to 4% of your mortgage amount as a 0% interest forgivable second mortgage. No monthly payments. Forgiven 1/60th per month starting at year 5 — fully forgiven at year 10.

Without CAL: Lower interest rate — typically 0.25–0.50% better than the CAL version. Best if you already have funds for down payment and closing costs.

Loan products available

30-year fixed-rate FHA, VA, USDA, or HFA Advantage Conventional.

Catch

You cannot pair First Place with a Mortgage Credit Certificate (MCC). If you want both DPA and the MCC tax credit, you'll use the Next Step program instead.

Ask About MHDC First Place →

Who qualifies

• First-time homebuyers OR repeat buyers (no first-time requirement)
• Higher income limits than First Place — designed for buyers who exceed First Place caps
• Minimum credit score: 640
• Within Next Step's higher county-specific income limits
• Completes a homebuyer education course

How the assistance works

Same as First Place CAL — up to 4% of mortgage as a 0% interest forgivable second mortgage. No monthly payments. Forgiven 1/60th per month starting year 5, fully forgiven at year 10.

Worth knowing

• The biggest advantage over First Place: you can pair Next Step with the MCC tax credit for additional long-term tax savings.
• Available even if you've owned a home before — useful for buyers who lost a previous home or are starting fresh.

Ask About MHDC Next Step →

How it works

This is not a loan or a grant. It's an annual federal tax credit. MHDC issues your certificate at closing, and every year afterward you claim a credit on your federal tax return equal to a percentage of the mortgage interest you paid.

• Credit rate: 25%, 35%, or 45% of mortgage interest paid (set by MHDC)
• Maximum credit: $2,000 per year
• Lasts the life of your loan
• Unused credit can be carried forward up to 3 years

Who qualifies

• First-time homebuyer (or veteran, or buying in a federally targeted area)
• Within MHDC income and purchase price limits
• Uses an MCC-participating lender (most MHDC-certified lenders)

Worth knowing

• Over 10 years, this can be worth $15,000–$20,000 in real federal tax savings. That's not hypothetical — it's dollar-for-dollar tax credit, not a deduction.
• Pairs with the MHDC Next Step program. Does not pair with First Place.
• Heavily underused. Most buyers and even many lenders don't bring it up.

Catch

Lender sets up the certificate at closing — typical fees range from $100–$500 plus possible lender admin fee. The lifetime value usually pays back this cost in the first year or two.

Ask About the MCC →