The MHDC Eligibility Test, In Order
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Missouri's test has one unusual step at the front and one unusual trap at the back. Work through it in this order and neither surprises you.
Step 1. Which program?
This comes first because it decides which income column and which price cap you read, and whether ownership history matters at all.
| First Place | Next Step | |
|---|---|---|
| Must be first-time? | Yes, unless a qualified Veteran or a targeted tract | No |
| Income, 1–2, floor | $97,100 | $116,520 |
| Price, 1-family | $566,354 | $692,211 |
Why Next Step is the more useful program for more people than you would think.
Step 2. If First Place, the three-pronged test
All three must hold. You must not have owned a home or had a present ownership interest in a primary residence for the past three years; you must not have taken a real estate tax deduction on IRS Schedule A for any residence within the past three years; and you must not have taken a mortgage interest deduction.
Two of those are tax-return questions. How the test actually gets applied.
Exempt: qualified Veterans, anywhere in Missouri, and anyone buying in a targeted census tract. Veterans · targeted tracts.
Step 3. Income
MHDC uses two brackets, one to two persons and three or more, across five areas. The step happens at the third person and then stops.
| Area | Non-targeted 1–2 | Non-targeted 3+ | Targeted / Next Step 1–2 | Targeted / Next Step 3+ |
|---|---|---|---|---|
| Kansas City MSA | $113,400 | $130,410 | $136,080 | $158,760 |
| St. Louis MSA | $113,500 | $130,525 | $136,200 | $158,900 |
| Columbia MSA | $116,300 | $133,745 | $139,560 | $162,820 |
| Jefferson City MSA | $105,500 | $121,325 | $126,600 | $147,700 |
| All other areas | $97,100 | $111,665 | $116,520 | $135,940 |
Columbia, meaning Boone County, has the highest limits in Missouri, above Kansas City and St. Louis both. The area definitions, the exclusions, and the multipliers.
Step 4. Credit and ratios
| Requirement | MHDC |
|---|---|
| Minimum FICO | 640, or 660 for all manufactured home purchases |
| DTI, government loan, FICO 640–679 | 45% or less |
| DTI, government loan, FICO 680+ | up to 50% |
| DTI, conventional, FICO 640+ | up to 50% |
| LTV / minimum down payment | None set by MHDC |
MHDC notes that FICO and DTI limits are established by the master servicer, US Bank, and are subject to change. More on credit.
Step 5. The property
Missouri only. Single-family detached, owner-occupied one- or two-unit duplexes, semi-detached, condominiums, town homes and double-wide mobile homes. Occupancy within 60 days of purchase, as a principal residence.
All variations of properties located within flood zones A and V are ineligible. In a state with the flood geography Missouri has, that is not a footnote. Property rules.
Step 6. The requirement that outlives closing
Everything above is tested before you close. The forgiveness schedule is not. Nothing is forgiven for five years, and selling or refinancing inside the ten-year term makes you responsible for repaying all or a portion of the assistance.
That is the trap at the back, and it is the reason this site exists. Read it before you commit.
Two things MHDC does not require
A specific homebuyer education course. MHDC's FAQ: does MHDC mandate a specific Homebuyer Education course be taken? MHDC does not have a guideline for this. Lenders follow master servicer or their own agency guidelines. That is the opposite of Illinois, Ohio and Michigan. What it means in practice.
A minimum down payment of your own. MHDC sets no maximum LTV and no minimum down payment or minimum loan amount; those come from the agency product underneath.
And one thing that helps more than people realise
Non-occupying co-signers are allowed, they do not need to be first-time homebuyers, and their income is excluded from the MHDC household income calculation entirely. The co-signer rule.
Send us the scenario and we will run it against the current limits.
Frequently asked questions
What are the requirements for MHDC down payment assistance?
A minimum credit score of 640, or 660 for manufactured homes; household income under the limit for your area, household size and program, which ranges from $97,100 to $162,820; a purchase price at or under $566,354 non-targeted or $692,211 on Next Step and in targeted tracts; an eligible Missouri property occupied within 60 days; and either first-time buyer status, qualified Veteran status or the Next Step program.
What credit score do you need for MHDC?
640 generally, and 660 for all manufactured home purchases. Debt-to-income limits go with it: on a government loan, 45% or less with a FICO of 640 to 679 and up to 50% at 680 or higher; on a conventional loan, up to 50% with a score of 640 or higher. MHDC notes these are set by the master servicer, US Bank, and are subject to change.
Does MHDC require a down payment of your own?
No. MHDC states that its programs have no minimum LTV requirements and no maximum or minimum down payment requirements, and no minimum loan amounts. Any LTV requirement comes from the master servicer or the purchasing agency, meaning Ginnie Mae, Fannie Mae or Freddie Mac, rather than from MHDC itself.
Are flood zone properties eligible for MHDC financing?
No, for zones A and V. Cornerstone's approved lender guidance for MHDC states that all variations of properties located within flood zones A and V are ineligible. Given Missouri's river geography this rules out real inventory in some areas, so it is worth checking the flood zone before you get attached to a property rather than after.
How is household size counted for MHDC income limits?
MHDC uses two brackets, one to two persons and three or more, so the limit steps up at the third person and then stays flat. A household of three, four or six reads the same figure. Non-occupying co-signers are excluded from the household size composition entirely, and their income is excluded from the household income calculation.
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.