18 Aug Down Payment Assistance Opportunities in Saint Louis County

Interested in buying a home, but worried about funds for down payment?

Or afraid of moving in and having to come up with significant cash for repairs in coming years? Are you looking for a deal? A foreclosure that you can fix up and make your own? Or a move-in ready home that needs nothing but your furniture? If you answered yes to any of these questions, I have some exciting news to share with you regarding St. Louis County’s Neighborhood Stabilization Program and the assistance they are offering buyers.

The Neighborhood Stabilization Program is part of the Housing and Economic Recovery Act (HERA) program. The act was signed into law in 2008 to address the severe housing crisis. Title II of the Act appropriates $3.92 billion of grant funds under the Neighborhood Stabilization Program. These funds allow states and local governments to purchase and redevelop abandoned or foreclosed properties in areas with the greatest need based on the extent of foreclosures, subprime mortgages and mortgage delinquencies and defaults. St. Louis County has used these funds to offer a 3 part Neighborhood Stabilization program to buyers that meet income and qualification criteria.

First, let’s start with the income guidelines.

To buy a home under this program, you must fall below the following guidelines (As defined by 120% of the Area Median Income.)

• 1 person household: $57,350
• 2 person household: $65,550
• 3 person household: $73,750
• 4 person household: $81,950
• 5 person household: $88,500
• 6 person household: $95,050
• 7 person household: $101,650
• 8 person household: $108,200

If you meet these criteria, and are pre-approved for a conforming FHA, Conventional or VA loan, the only other requirement is that you attend a class at one of the approved housing counseling agencies:

Beyond Housing
Northeast Community Action Corp
Better Family Life

And that is all it takes to qualify for this program. Now speaking of the program, there are several options. Let’s start with the first, The Best Home on The Block.

The Best Home on the Block

This program is for you if you are looking for that move-in ready, everything updated or even new construction home. Through this program, St. Louis County purchased foreclosures throughout target areas and renovated them to high energy efficiency standards. As a bonus, they also offer anywhere from $5000 – $15,000 in FORGIVABLE down payment assistance depending on your household size and income.

For a list of these available properties, visit here.

The NSP Homebuyer Purchase Program

Maybe you are the type of buyer that wants a fixer-upper. You would like to buy a place that needs work and makes it your own. However, between down payment, closing costs and repairs, you are worried about the financial obligations. The NSP Homebuyer Purchase Program is St. Louis County’s newest program and can solve that issue for you. Through this program, you must purchase a foreclosure as a primary residence in an area roughly determined by zip code. St. Louis County is offering forgivable loans that cannot exceed 25% of the acquisition costs that can be used for down payment, closing costs or rehab costs. They have partnered with several lenders to offer this streamlined process. For more information, view a flyer here.

The Hometown Heroes Program

This program can be used in conjunction with the Best Home on the Block and the NSP Homebuyer Purchase Program. It is an additional down payment assistance program offered to those that serve our community. If you are a firefighter, police officer, active military/veteran, primary or secondary teacher, nurse, or EMT, you can receive an additional $7500 in forgivable down payment assistance when purchasing a home through the NSP program.

To learn more about all of these programs, visit St. Louis County’s webpage here.

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