Missouri First-Time Home Buyer Guide 2026
This guide for Missouri first-time home buyers covers MHDC’s First Place and Next Step down payment assistance programs, income and purchase price limits, eligibility requirements, and step-by-step guidance for first-time buyers in Missouri.
First Place Assistance Program
First Place is MHDC’s primary down payment assistance program for Missouri first-time home buyers. It provides a 4% cash assistance loan — a forgivable second mortgage — for down payment and closing costs, paired with an FHA, VA, USDA, or conventional first mortgage at an MHDC-set rate. The assistance is 100% forgivable after 10 years of continued occupancy, reducing by 1/60th each month starting in year five.
| Feature | Detail |
|---|---|
| Assistance amount | 4% of the loan amount, as a forgivable second mortgage |
| Repayment | Forgiven 1/60th per month starting in year five; fully forgiven after 10 years of continued occupancy |
| Eligible first mortgage | FHA, VA, USDA, or conventional loan at an MHDC-set rate |
| Min credit score | 640 |
| Max debt-to-income | 45–50%, depending on credit score and loan type |
| First-time buyer required? | Generally required; veterans and buyers in federally-targeted census tracts are exempt |
| Purchase price / income limits | Set by MHDC and vary by area — see Income and Purchase Price Limits below |
Next Step Assistance Program
Next Step offers the same 4% forgivable second loan structure as First Place, but with higher income limits and no first-time buyer requirement — it’s designed for repeat buyers and buyers whose income exceeds First Place’s limits. Like First Place, it requires a minimum 640 credit score and can be paired with MHDC’s Mortgage Credit Certificate program. Maximum debt-to-income ratio runs up to 50%.
| Feature | Detail |
|---|---|
| Assistance amount | 4% of the loan amount, as a forgivable second mortgage |
| Repayment | Forgiven 1/60th per month starting in year five; fully forgiven after 10 years of continued occupancy |
| Eligible first mortgage | FHA, VA, USDA, or conventional loan; can be paired with MHDC’s Mortgage Credit Certificate program |
| Min credit score | 640 |
| Max debt-to-income | Up to 50% |
| First-time buyer required? | No — open to repeat buyers and buyers exceeding First Place income limits |
| Purchase price / income limits | Set by MHDC and vary by area — see Income and Purchase Price Limits below |
Income and Purchase Price Limits
MHDC’s 2026 purchase price limits are uniform statewide, but income limits vary by metro area. Limits below are for a 1-2 person household; add roughly 15% for households of 3 or more. Figures are effective May 1, 2026.
| Area | First Place Income Limit | Next Step Income Limit | Max Purchase Price |
|---|---|---|---|
| Kansas City metro (Jackson County) | $113,400 | $136,080 | $566,354 |
| St. Louis metro (St. Louis County) | $113,500 | $136,200 | $566,354 |
| Columbia metro (Boone County) | $116,300 | $139,560 | $566,354 |
| All other areas | $97,100 | $116,520 | $566,354 |
Purchase price limits are statewide. Unlike income limits, MHDC’s maximum purchase price of $566,354 for a single-family home (non-targeted areas) applies the same everywhere in Missouri — Kansas City, St. Louis, or a rural county. Targeted-area limits run higher. Confirm current figures at mhdc.com.
Missouri Down Payment Assistance Eligibility Requirements
To qualify for First Place, Next Step, or MHDC’s other assistance programs, buyers generally must meet the following requirements:
- Credit score: Minimum 640 for both First Place and Next Step
- Owner-occupancy: Must occupy the home as a primary residence within 60 days of closing
- Income limits: Household income must be at or below MHDC’s published limit for the specific area and program
- First-time buyer status: Required for First Place, with exceptions for veterans and targeted-tract purchases; not required for Next Step
- Debt-to-income: Generally 45–50% maximum, depending on credit score and loan type
Step-by-Step Buying Process for Missouri First-Time Home Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | You need at least 640 for First Place or Next Step. |
| 2 | Find an MHDC-approved lender | Not all Missouri lenders offer MHDC programs. Ask specifically about First Place and Next Step eligibility. |
| 3 | Confirm income and purchase price limits | Limits vary by metro area — check your specific county at mhdc.com. |
| 4 | Get pre-approved | Your lender will confirm which first mortgage type (FHA, VA, USDA, or conventional) pairs best with your MHDC assistance. |
| 5 | Shop for a home within purchase price limits | Statewide max is $566,354 for a single-family home in non-targeted areas. |
| 6 | Close on your loan | Your 4% forgivable second loan funds at closing alongside your first mortgage. |
