Mortgage Industry Analyst & Contributing Writer · NMLS #2103487, MBA
Missouri First-Time Home Buyer Programs 2026: MHDC Guide
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MHDC Programs Overview
The Missouri Housing Development Commission (MHDC) is the state housing finance agency, offering below-market first mortgages and down payment assistance through certified lenders statewide.
MHDC's two main products are First Place (first-time buyers, lowest rates) and Next Step (repeat buyers and higher incomes). Both can pair with the Cash Assistance Loan (CAL) for down payment help.
| Program | Type | Max Benefit | Key Requirement |
|---|---|---|---|
| First Place Loan | First mortgage (FHA/VA/USDA/Conventional) | Lowest rate | 640 credit, first-time buyer* |
| Next Step Loan | First mortgage | Competitive rate | Repeat buyers OK, higher income limits |
| Cash Assistance Loan (CAL) | DPA second loan | 4% of loan amount | Forgivable after 10 years |
| Non-CAL option | First mortgage only | Lower rate, no DPA | For buyers with own funds |
| MHDC MCC | Tax credit | Up to $2,000/year | Reduces federal tax liability |
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First Place Loan: Lowest Rates for First-Timers
The First Place Loan is MHDC's flagship program for first-time buyers, offering 30-year fixed-rate FHA, VA, USDA, and conventional loans at the lowest rates MHDC offers — typically 0.25-0.50% below market.
First-time buyer means no ownership interest in a primary residence in the past 3 years — waived in targeted areas (covering much of rural Missouri and parts of St. Louis and Kansas City) and for qualified veterans.
Minimum credit score is 640. Income limits are approximately $100,000-$130,000 depending on county and household size. See our FHA vs conventional guide for loan-type help.
- 30-year fixed-rate FHA, VA, USDA, or conventional loans
- Lowest MHDC rates — typically 0.25-0.50% below market
- Minimum 640 credit score
- First-time buyer (waived in targeted areas and for veterans)
- Income limits ~$100,000-$130,000 by county
- Can pair with Cash Assistance Loan DPA
Next Step: For Repeat Buyers & Higher Incomes
Next Step serves buyers who do not qualify for First Place — repeat buyers, households above First Place income limits, or those buying above First Place price limits. It offers competitive rates with more flexible eligibility.
Next Step can also pair with the Cash Assistance Loan for down payment help, making it a strong option for move-up buyers who need assistance.
The trade-off: Next Step rates are slightly higher than First Place. If you qualify for both, always compare — First Place is usually cheaper.
- For repeat buyers and higher-income households
- No first-time buyer requirement
- Higher income and purchase price limits than First Place
- Can pair with Cash Assistance Loan DPA
- Slightly higher rates than First Place
- Same 640 credit minimum
Cash Assistance Loan (CAL): 4% Forgivable DPA
The Cash Assistance Loan provides 4% of the first mortgage amount for down payment and closing costs — $12,000 on a $300,000 loan. It is a second mortgage forgiven after 10 years of continuous occupancy.
Stay in the home a decade and the entire balance is forgiven — you owe nothing. Sell or refinance earlier and you repay the unforgiven portion. There is no monthly payment.
MHDC also offers a non-CAL option: skip the assistance and get an even lower first-mortgage rate. If you have your own down payment saved, the non-CAL rate saves more over time.
- 4% of first mortgage amount for down payment and closing costs
- Forgiven after 10 years of occupancy
- No monthly payment on the second
- Repay unforgiven balance if you sell early
- Non-CAL option: lower rate without assistance
- Pairs with First Place or Next Step
MHDC Income and Purchase Price Limits 2026
MHDC income limits vary by county and household size. Here are the approximate 2026 limits for major Missouri counties — verify at MHDC.com.
- St. Louis and Kansas City metros have the highest limits
- Income limits based on total household income
- Purchase price limits apply to total price
- Targeted areas have higher limits and no first-time requirement
- Verify current limits at MHDC.com
| County | Income Limit (1-2 persons) | Income Limit (3+ persons) | Purchase Price Limit |
|---|---|---|---|
| St. Louis County | ~$115,000 | ~$132,250 | ~$480,000 |
| St. Louis City | ~$115,000 | ~$132,250 | ~$480,000 |
| Jackson (Kansas City) | ~$110,000 | ~$126,500 | ~$470,000 |
| St. Charles | ~$115,000 | ~$132,250 | ~$480,000 |
| Clay (KC Northland) | ~$110,000 | ~$126,500 | ~$470,000 |
| Greene (Springfield) | ~$100,000 | ~$115,000 | ~$440,000 |
| Boone (Columbia) | ~$105,000 | ~$120,750 | ~$450,000 |
| Jefferson | ~$110,000 | ~$126,500 | ~$470,000 |
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To qualify for First Place, first-time buyer status means no ownership in a primary residence in the past 3 years — waived in targeted areas and for veterans. Next Step has no first-time requirement.
Credit score: minimum 640 for all MHDC programs. DTI: maximum 45% for conventional, up to 50% for FHA with automated approval. See our DTI ratio guide for strategies.
Occupancy: primary residence only. Homebuyer education: required for first-time buyers using CAL — MHDC-approved courses are available online.
- First-time buyer for First Place (waived: targeted areas, veterans)
- Next Step: no first-time requirement
- Credit score: 640+ for all programs
- DTI: 45% conventional, up to 50% FHA
- Primary residence only
- Complete MHDC-approved homebuyer education
- Must use an MHDC-certified lender
How to Apply for MHDC Programs
MHDC programs are accessed through certified lenders — you cannot apply directly to MHDC.
Step 1: Find a certified lender at MHDC.com. Step 2: Get pre-approved — the lender verifies credit, income, and program eligibility. Step 3: Complete homebuyer education if using CAL. Step 4: Find a home within the purchase price limit. Step 5: Close — DPA funds are delivered at settlement.
- Step 1: Find an MHDC-certified lender at MHDC.com
- Step 2: Get pre-approved and compare CAL vs non-CAL rates
- Step 3: Complete homebuyer education if required
- Step 4: Shop within county purchase price limits
- Step 5: Close — DPA funds delivered at settlement
- Tip: Compare First Place vs Next Step if you qualify for both
Local Missouri DPA Programs
Several Missouri cities offer additional assistance.
- St. Louis and Kansas City have the largest local programs
- Local programs may stack with MHDC — ask your lender
- City programs typically have lower income limits
- Funding cycles open and close — check availability early
| Program | Area | Assistance | Key Details |
|---|---|---|---|
| St. Louis City DPA | St. Louis City | Up to $10,000+ | Deferred, income limits |
| Kansas City HAP | Kansas City | Up to $15,000 | Deferred 0% loan |
| Springfield HAP | Springfield | Up to $10,000 | Forgivable after 5-10 years |
| Columbia DPA | Columbia | Up to $10,000 | Deferred, income-restricted |
| Independence HAP | Independence | Up to $7,500 | Forgivable grant |
| St. Charles County DPA | St. Charles County | Up to $10,000 | Deferred 0% loan |
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Updated November 1, 2026
| Lender | Rate | Action |
|---|---|---|
Veterans United | 5.500% | Check Rate |
Navy Federal CU | 5.500% | Check Rate |
Better.com | 5.625% | Check Rate |
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CrossCountry Mortgage | 5.750% | Check Rate |
Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.
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Mortgage Industry Analyst & Contributing Writer
MBA and NMLS #2103487. Former loan officer at Bank of America and regional sales manager. Expert in USDA, FHA 203k, and DPA programs.
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