Downpayment Assistance
One of the greatest obstacles to buying a home can be the out of pocket cash required for downpayment and closing costs. Many families find that they can afford the monthly mortgage payment but don't have the savings to cover closing costs. Neighborhood Housing Partnership (NHP) wants to remove those obstacles by offering downpayment and closing cost assistance to qualified households.
NHP has several programs available for qualified homebuyers. The maximum grant assistance ranges from $3000-$5000 per customer. General guidelines include the following:
- The property (to be owner-occupied) must be located within the defined city limits of the City of Springfield.
- The client must be a first-time homebuyer or not have owned a home within the last three years.
- Total household income cannot exceed program limits.
- A minimum financial contribution by the client is required.
- The home must be in good repair and be in compliance with all city building and property maintenance codes.
- The client must have complete one-on-one counseling and the 4-week homebuyer classes.
- Client must secure permanent financing with a lender before assistance is awarded.
State of Ohio Program:
- Maximum grant = $3,000.
- Funds may be used toward down payment assistance (3% of sales price) and/or eligible closing costs.
- Term of deferred grant is 5 years, with total amount forgiven at the end of the 60 months; deferred grant secured by recording a restrictive use covenant with deed.
Federal Program:
- Maximum grant = $5,000.
- Funds may be used for down payment assistance ($1 to $1 match of client's funds), eligible closing costs, and/or mortgage principal reduction, if necessary.
- Term of deferred grant is 3 years, with equal amounts forgiven for each of the 36 months; deferred grant secured by recording a 2nd mortgage; subordinations considered on a limited case-by-case basis.
| Household size |
State-65%AMI |
Federal-80%AMI |
| 1 |
25,550 |
31,450 |
| 2 |
29,225 |
35,950 |
| 3 |
32,875 |
40,450 |
| 4 |
36,475 |
44,900 |
| 5 |
39,400 |
48,500 |
| 6 |
42,325 |
52,100 |
| 7 |
45,250 |
55,700 |
| 8 |
48,175 |
59,300 |
Income limits effective 6/03/11
Contact NHP to find out how you can qualify for this assistance to find your way home.