The Missouri Assistance Guide, Start to Close
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Everything on this site in the order you will meet it, with the date we read each figure from MHDC's own documents.
Step one: which program
In Missouri this comes before everything, because it decides the income column, the price cap and whether your ownership history matters.
| First Place | Next Step | |
|---|---|---|
| Repeat buyers | Only qualified Veterans or a targeted tract | Yes |
| Income, 1–2, floor | $97,100 | $116,520 |
| Price, 1-family | $566,354 | $692,211 |
MHDC's limits sheet heads the higher column "TARGETED AREAS/NEXT STEP", which is why Next Step carries targeted-level limits without a targeted tract. Why that is the key fact here.
Step two: the first-time test, if it applies
Three prongs, all of which must hold: no ownership interest in a primary residence for the past three years, no real estate tax deduction on IRS Schedule A for any residence in the past three years, and no mortgage interest deduction. Two of the three are read off tax returns.
Pull three years of returns before you apply. The test · the veteran exemption.
Step three: the numbers
| Test | Figure | Varies? |
|---|---|---|
| Credit score | 640, or 660 manufactured | No |
| DTI, government | 45% at 640–679; 50% at 680+ | By score |
| DTI, conventional | up to 50% at 640+ | No |
| Income | $97,100 to $162,820 | By area, size, program |
| Purchase price | $566,354 or $692,211 | By targeted status and program |
Income by area · check your band · the ratio grid.
Step four: understand what you are taking
A 100% forgivable second loan equal to 4% of the total mortgage amount, for down payment and closing costs. MHDC's own FAQ says it is not grant funds; it is a second loan.
And the schedule is the thing. Nothing is forgiven for five years. After year five the balance diminishes by 1/60 every month until it clears at year ten. Sell or refinance inside that window and you repay all or part of it.
This is the single most misreported fact about Missouri assistance. Read the page · see your own numbers.
Step five: the property
Missouri only, owner-occupied within 60 days. Single-family, duplex, semi-detached, condo, town home, double-wide mobile home. Flood zones A and V are ineligible, all variations. Check the zone before you get attached to a house. Property rules.
Step six: what MHDC does not require
Homebuyer education. "MHDC does not have a guideline for this." Your loan product or US Bank as master servicer still might. That is the opposite of Illinois, Ohio and Michigan. More.
A down payment of your own. No maximum LTV, no minimum down payment, no minimum loan amount from MHDC.
A co-signer's income to count. Non-occupying co-signer income is excluded from the household limit and they need not be first-time buyers. The co-signer rule.
Step seven: the process
Your lender reserves the loan through MHDC's Lender Online portal, selecting the program, government or conventional, the DPA option and whether the property is in a targeted or non-targeted area. Loans close after a confirmed reservation, and a compliance package follows.
The master servicer is US Bank, so that is where your payments go after closing rather than to the lender who originated the loan.
Where the market sits
Of Missouri's 25 metros in Zillow's August 2026 data, 24 rose year over year. Kansas City leads on price at a typical value of $327,320, followed by Columbia at $321,371 and St. Louis at $275,704. Branson was the only decline. The price limits against the market.
By metro: Kansas City · St. Louis · Columbia and Jefferson City · Springfield and the southwest.
On dates
Program terms come from the First Place and Next Step Operations Manuals, both revised 3/11/2026. Income limits are HUD FY 2026, effective May 1, 2026. Purchase price limits are Rev. Proc. 2026-23, effective May 6, 2026. Conforming limits are FHFA's 2026 file. Typical values are Zillow's ZHVI, August 2026. All read on 2026-09-26.
All of it moves. Ask us for the current figure.
Frequently asked questions
How does down payment assistance work in Missouri?
MHDC runs two programs, First Place and Next Step, and both provide the same help: a 100% forgivable second loan equal to 4% of the total mortgage amount for down payment and closing costs. First Place is for first-time buyers and qualified Veterans; Next Step also takes repeat buyers and carries higher limits. MHDC down payment assistance is a forgivable second loan, not a grant.
What is the first thing to check for MHDC eligibility?
Which program you are on, because it decides the income column, the purchase price cap and whether your ownership history matters at all. First Place requires a first-time buyer or qualified Veteran and uses the lower limits; Next Step accepts repeat buyers and carries the targeted-area limits statewide, meaning $692,211 on price and income up to $162,820.
Who services an MHDC loan after closing?
US Bank is the master servicer, so payments go there rather than to the lender who originated the loan. US Bank also sets the FICO and debt-to-income limitations that MHDC publishes, and those are noted as subject to change, which is one reason the figures on this site carry the date we read them.
What surprises people most about Missouri down payment assistance?
Two things. That nothing is forgiven for the first five years, despite the assistance being widely described as forgiven over ten years. And that properties in flood zones A and V are ineligible in all variations, which rules out real inventory in a state shaped by two major rivers. A third, smaller surprise is that MHDC does not mandate homebuyer education.
How much house can you buy with MHDC assistance in Missouri?
Up to $566,354 for a one-family home in a non-targeted area, or $692,211 on Next Step and in targeted census tracts. Neither binds at typical values: Kansas City is Missouri's most expensive metro at $327,320 in August 2026, which leaves $239,034 of headroom under even the lower cap. Income, not price, is the constraint that decides most Missouri files.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. MHDC program terms, income limits and purchase price limits are set by the Missouri Housing Development Commission and change; figures here carry the date we verified them against MHDC's published documents. MHDC down payment assistance is a forgivable second loan, not a grant, and selling or refinancing inside ten years can require repaying all or part of it. Loans are subject to borrower and property qualification.