City to cover loan closing costs in north, central Springfield

The city of Springfield is offering to pay first-time homebuyers’ closing costs on residential properties in central and north Springfield.

Funded by the U.S. Department of Housing and Urban Development, the city’s Department of Planning and Development will pay up to $5,000 toward loan closing costs for income-qualified homebuyers, according to a news release.

“We hope this great program will encourage homebuyers to purchase a house in zones 1 and 2,” said Tom Prater, city councilman for Zone 2, in the release. “If the city of Springfield can help a few people over the initial hurdles of home ownership, we will improve our neighborhoods.”

Eligible participants must be purchasing a home north of Grand Street and generally between West Bypass and Glenstone Avenue, located in these neighborhoods: Bissett, Westside, Heart of the Westside, West Central, Tom Watkins, Grant Beach, Woodland Heights, Doling, Midtown, Weller and Robberson.

Springfield Community Development Loan Officer Bob Jones said the city expects to fund roughly $100,000 worth of down payments for 20 loans.

“When the buyer has a signed purchase contract, funding will be reserved until the remaining underwriting for their home loan is complete,” Jones said in the release.

Through the program, eligible homebuyers can receive a city loan to cover closing costs; the loan is nonamortizing, meaning payments are not required. The homeowners would only have to make payments if they move before the 10-year loan period is complete, according to SpringfieldMo.gov.

Qualifying recipients must be single parents or classified as “displaced homemakers” under federal income rules. For example, a household of four must make $48,000 or less per year, according to the release.