Home
Ownership Assistance Program
This program is designed to help low- to moderate-income people buy a home.
Through the cooperation of local lending institutions, real estate salespeople, and the City of Columbia , opportunities for citizens to take the initiative toward home ownership have never been better.
Who may participate in the program?
Anyone who meets the Department
of Housing and Urban Development low- to moderate-income guide-lines
for the Columbia area may participate.
Income limits as of January 1, 2004 , are as follows:
| Family Size | Lower Income |
1 person |
$34,700 |
How does the program work?
Through the normal process of buying a home, low- to moderate-income families may not have enough money for the down payment and other up-front loan closing costs. In order to help families with these costs, the City of Columbia offers assistance in the form of a grant up to $3,500. The program does require the buyer to provide a minimum of $500 towards the purchase price from their own funds as a "stake" in the property. The buyer must also be a first time home buyer.
Buyers are required to attend a home buyer education program designed to help them understand their credit history and the process of buying and paying for a home. To find out the current class schedule and to register for a class, contact Joan Smith at 573-441-9880.
Local lenders are partners in this program. Some lenders offer home loans at terms that make home-ownership attractive and affordable. They can also refer buyers to the appropriate credit programs offered throughout Columbia.
Where can I buy a house?
Houses must be located in certain neighborhoods.
The eligibility area map for the program is available here. Applicants
are encouraged to avoid floodplains.
What types of property are eligible?
The property must be an
existing single-family dwelling. City staff must inspect the property
prior to closing to determine if it meets local property maintenance
code requirements. If the property fails to meet requirements, the
buyer must commit to bringing the home into compliance within two years
of purchase. The property must also be free from any defects that pose
a danger to the health and safety of the occupants prior to occupancy
or within six months of purchase. A buyer can submit an application
to one of the City's rehabilitation programs for assistance in bringing
the property into compliance. Another inspection will occur at the
end of the specified time, and if the property still fails to meet
requirements, repayment of home-ownership assistance funds will be
required from the buyer at that time.
Houses built prior to January 1, 1978 , must have an inspection to determine if deteriorated paint exists. Samples of deteriorated paint will be taken and sent off to a lab for analysis. If the paint is determined to contain lead above HUD's level of concern, paint stabilization of deteriorated surfaces by trained personnel is required prior to assistance being provided. You are also restricted from moving into the home until it is determined that identified lead hazards are corrected and a clearance of the unit is achieved. A $500 grant is available to the buyer to help offset costs associated with lead hazard reduction; all costs over $500 must be paid by the buyer or seller.
Are there any other requirements?
The buyer is required to
sign an Affidavit which prevents
the leasing, subleasing or selling of the home for a minimum of five
years. This Affidavit will be recorded with the Boone County
Recorder's Office. Funds provided for down payment and closing cost
assistance shall be repaid on a prorated basis if the property is sold
or ceases to be owner-occupied before the end of the affordability
period.
Property value may not exceed maximum purchase price for that type of single family housing for the area, as published by HUD. More information on this maximum purchase price is available in the Planning Department.
What other programs are available?
Local lenders may offer a
number of loan packages. For example, some lenders may loan 100% of
purchase, down payment and closing costs, depending on the location
of the home in specific neighborhoods. You should take the time to
find the loan package that works best for you.
Where can I get more information?
Contact a loan officer at
a local bank, savings and loan, mortgage company, your credit union,
or Enterprise Development Corporation at (573)875-8117. If you have
questions, contact the Department of Planning and Development on the
second floor of City Hall, 701 E. Broadway, in downtown Columbia. Telephone:
(573)874-7239 (TTY: 874-6364)Fax: (573)874-7546
Visit our website at http://www.gocolumbiamo.com/Planning/. Our e-mail address is planning@gocolumbiamo.com.
Application for the down payment/closing cost assistance is made through your lender in cooperation with Enterprise Development Corporation, a local non-profit development organization that administers the Home ownership Assistance Program. Once you have met your lender's requirements to get a home loan, have your loan officer contact Enterprise Development Corporation at (573)875-8117.
Fair Housing in Columbia
The Fair Housing Act prohibits discrimination
in housing because of race
or color, national origin (or ancestry), religion, sex, familial
status (including children under the age of 18 living with parents
or legal custodians, pregnant women and people securing custody of
children under 18), handicap (disability), marital status or sexual
orientation.
Contact the Columbia Human Rights Commission at (573) 874-7488 (V/TTY) if you
feel you have been discriminated against.
