For many people buying a home can be difficult. Past credit problems, lower income levels and the lack of  a down payment can make buying a home seem impossible.

Many government agencies and nonprofit organizations offer programs that provide financial help to lower income homebuyers. Each program is different.  Some provide grants for down payments and closing costs, and some offer discounted interest rates or low down payment loans.

Most homebuyer programs are available only to certain income levels, and often have other requirements.  Often the homebuyer must complete a homebuyer education class, and sometimes the buyer must live in the home for a specific time. Some of the programs are available only in certain "target" areas.  Most programs are available only to first-time homebuyers.

Be sure to review the programs available in your area before buying your first home.

Homebuyer Assistance Programs:

Missouri First Place Loans - provide below-market interest rates, and individual buyers may also be eligible for a 3% cash assistance grant that will help them with down payment and closing costs.

American Dream Downpayment Initiative Program provides first-time homebuyers forgivable loans equal to 6 percent of the home's purchase price to help defray the upfront costs of purchasing a home.

Homeownership Program from the Kansas City Affiliate of Habitat for Humanity

Homebuyer Program through ACORN Housing allows homebuyers access to mortgage programs with lower interest rates and lower down payments

Search for Homebuyer Assistance Programs in the Kansas City metro area - a service of the Kansas City Regional Association of Realtors®

KC Dream Program - first time homebuyer program offering down payment and closing cost assistance for individuals who qualify and purchase homes within the municipal boundaries of Kansas City, Missouri

Direct Home Ownership Loans - loans made by USDA Rural Development to low and very low income applicants to buy, build, or repair homes (payments are subsidized)

Guaranteed Rural Housing Loans - loans made by conventional lenders and guaranteed by USDA Rural Development to low and moderate income applicants to buy or build homes (30 year fixed interest rate)

HUD's Good Neighbor Next Door program provides discounts to certain teachers, firefighters and law enforcement personnel of 50% from the list price of FHA-insured properties. This program only applies to specifically designated areas.

Federal Government Housing Loans - information about housing loan programs available from various federal agencies