First-Time Homebuyer Programs in Missouri

Down Payment Assistance Programs

• MHDC First Place Loan. MHDC's 30-year fixed-rate first mortgage for first-time buyers (and repeat buyers in federally targeted areas), available with FHA, VA, USDA-RD, or conventional underwriting at a below-market rate. The Cash Assistance option of First Place provides up to 4% of the loan amount - typically up to $10,000 - as a forgivable second mortgage at 0% interest with no monthly payment, applied to down payment and closing costs. The forgivable second is forgiven over a multi-year continuous owner-occupancy period; balance becomes due if the home is sold, refinanced, or no longer owner-occupied before the forgiveness period ends.
• MHDC Next Step Loan. MHDC's first mortgage product for repeat buyers who do not qualify as first-time homebuyers. Next Step provides a below-market 30-year fixed-rate first mortgage (FHA, VA, USDA-RD, or conventional) with optional cash assistance for down payment and closing costs, structured similarly to First Place. Next Step is the right MHDC product for buyers who have owned a primary residence in the past three years but still need below-market financing and DPA to make a move-up or relocation purchase work.
• MHDC Mortgage Credit Certificate (MCC). A federal tax credit equal to a percentage of the annual mortgage interest paid (capped at $2,000 per year), available statewide to eligible first-time buyers using MHDC financing. The MCC reduces federal income tax liability dollar-for-dollar each year for the life of the loan as long as the home remains the buyer's primary residence, effectively lowering the true cost of homeownership beyond what the interest rate alone reflects. The MCC can be combined with a First Place Loan or used with a non-MHDC first mortgage in many cases.

Income and Purchase Price Limits

MHDC income and purchase price limits vary by county, household size, and whether the property is in a federally targeted area. Income limits generally range from roughly $90,000 in lower-cost Missouri counties to $115,000+ in Jackson, Clay, Platte, St. Louis, and St. Charles counties for 1-2 person households, with higher limits for 3+ person households and in targeted areas. Purchase price limits typically fall in the $300,000-$425,000 range across most of the state. Always confirm current MHDC income and purchase price limits with an MHDC-approved lender or at mhdc.com before assuming eligibility.

City Programs Worth Knowing

Kansas City and St. Louis both run city-level down payment assistance programs designed to stack with MHDC's First Place or Next Step first mortgage. Beyond Housing provides additional assistance for buyers in specific St. Louis County municipalities.

• Kansas City Missouri Down Payment Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside Kansas City, Missouri limits. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with MHDC First Place Loan cash assistance. Funding cycles can exhaust mid-year - confirm availability with the Kansas City Housing and Community Development Department before applying.
• St. Louis Housing Authority First-Time Homebuyer Program. Up to $5,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside City of St. Louis limits. Structured as a forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with MHDC First Place Loan cash assistance. Funding is administered through the St. Louis Housing Authority and can run on cycles - confirm current availability before counting on it in your offer.
• Beyond Housing (St. Louis County). Beyond Housing is a HUD-approved nonprofit serving 24 Municipal Partnership communities in north St. Louis County (the 24:1 footprint). For income-qualified buyers purchasing in those municipalities, Beyond Housing can provide additional down payment and closing cost assistance, homebuyer education, and one-on-one homebuyer counseling. Beyond Housing assistance is designed to stack with MHDC First Place or Next Step financing and can be the difference-maker for buyers in St. Louis County communities that don't have their own city-level DPA program.

All three local programs run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. The city/agency review steps extend closing timelines by several weeks beyond a standard MHDC-only closing; plan that into the front of your timeline and confirm current funding availability with the administering agency before counting on it in your offer.

FHA Loan Requirements in Missouri

FHA loans are widely used by Missouri first-time buyers and are compatible with MHDC First Place and Next Step first mortgages, the Kansas City Missouri DPA Program, the St. Louis Housing Authority First-Time Homebuyer Program, and Beyond Housing assistance in St. Louis County. Across most of Missouri, FHA loan limits use the standard single-family ceiling.

How to Apply

1. Confirm you have not owned a primary residence in the past three years for MHDC First Place (waivers apply in federally targeted areas and for qualifying veterans). If you have owned recently, ask about MHDC Next Step instead.
2. Check your credit score - 580 is the FHA minimum for 3.5% down, and MHDC typically requires 640 or higher.
3. Review current MHDC income and purchase price limits for your county at mhdc.com.
4. Decide which MHDC product fits your profile: First Place (with Cash Assistance) for first-time buyers, Next Step for repeat buyers, and ask your lender about pairing either with the MHDC MCC for an annual federal tax credit on mortgage interest.
5. If you're buying inside Kansas City, Missouri limits, contact the Kansas City Housing and Community Development Department to confirm Down Payment Assistance Program eligibility and current funding.
6. If you're buying inside City of St. Louis limits, contact the St. Louis Housing Authority to verify First-Time Homebuyer Program availability. If you're buying in north St. Louis County, contact Beyond Housing to confirm whether your target municipality is in the 24:1 footprint and what assistance is available.
7. Complete a HUD-approved homebuyer education course - required by MHDC and by all of the city/agency programs above.
8. Select an approved lender on both the MHDC list and (if applicable) the relevant city or agency program's participating lender list.
9. Apply through your approved lender, who will coordinate the MHDC application and the city or agency program submission simultaneously.

FAQ