Local area programs in the St. Louis area have been distributing federal assistance to low- and middle-income home buyers. If interested home buyers are earning a decent wage, have a good enough credit score to be approved for a mortgage, and have some money to put down, they could qualify to be a part of one of these programs.  There are programs such as these run in St. Louis City, Jefferson, Madison, and St. Clair Counties, parts of St. Charles County, and the cities of St. Charles, St. Peters, Wentzville, and O’Fallon. 

These programs began after the home market crashed in 2008 and 2009, when Congress was afraid that a wave of foreclosures would damage neighborhoods, leaving homes abandoned and property values lowered.   Congress began giving money to local governments to buy foreclosed homes, fix them up, and then resell them.   Once the houses are fixed up, the city still has to sell them at appraisal value; this is to avoid driving down the values of nearby homes. However, because of this, the program added a cash subsidy for buyers.  In fact, some buyers receive anywhere from $3,000- $10,000 to put toward their homes. 

The program set out to buy houses strategically in neighborhoods that have been affected by the housing market crash.  In St. Louis, the areas where these houses are tend to be in North St. Louis and in Lemay.  To increase the sale rates, the houses are in desirable subdivisions.  Additionally, the county attempted to buy houses that are on corners so that they stand out to potential home buyers.  They also attempted to buy houses that were in the worst shape, so that in theory, fixing up the house would have the biggest effect on the neighborhood.  St. Louis County now has eleven fixed up homes through this government program that are on the market, and they are in the process of buying more.  All of the newly refurbished homes have been repaired with energy efficient materials and should not need any major repairs for the next fifteen years. 

Another program is available for homes that were not foreclosed on, but were fixed up by the government.  The program offering refurbished houses is called the Neighborhood Stabilization Program.  This program has stiffer qualifications including at least a $1,000 down payment on the house, a good credit score, and the buyer’s income is taken into account.  Interested buyers cannot annually make more than $59,150 for a single person and $84,500 for a family of four. Additionally you have to live in the house for a set amount of years, usually about five years, to avoid having to repay the government subsidy. 

While some program qualifications vary from others, programs such as these are extremely beneficial to home buyers and to neighborhoods across the St. Louis area.