Next Step Carries the Targeted Limits Everywhere
Program and regulatory figures verified September 26, 2026. Details change; confirm your scenario with us.
Most states make you find a targeted census tract to get the higher limits. Missouri hands them to you with a program name.
The column trick
MHDC publishes one page of limits, and its headings read "NON-TARGETED AREAS" and "TARGETED AREAS/NEXT STEP". That second heading is doing a lot of work: Next Step is grouped with targeted areas, so a Next Step buyer reads the targeted figures no matter where in Missouri the house is.
| Non-targeted (First Place) | Targeted / Next Step | Difference | |
|---|---|---|---|
| Purchase price, 1-family | $566,354 | $692,211 | $125,857 |
| Purchase price, 2-family | $725,146 | $886,289 | $161,143 |
| Income, Kansas City, 1–2 | $113,400 | $136,080 | $22,680 |
| Income, Kansas City, 3+ | $130,410 | $158,760 | $28,350 |
| Income, all other areas, 1–2 | $97,100 | $116,520 | $19,420 |
| Income, all other areas, 3+ | $111,665 | $135,940 | $24,275 |
Outside the four named metros the income headroom widens sharply: $19,420 more for a couple, $24,275 more for a family of four. Every area's figures.
And it takes repeat buyers
First Place is limited to first-time homebuyers and qualified Veterans. Next Step is not. MHDC's eligibility section says the borrower "may be a first-time homebuyer or a repeat buyer", and the program page describes it as serving first-time and repeat homebuyers with the option of cash assistance.
So a Missouri household that already owns, or owned recently, is not shut out of MHDC. It is simply on the other program. That is a much better answer than most states give the same household. The first-time test, if you are close.
One inconsistency in MHDC's own paperwork
Worth flagging because you may read it yourself. The Next Step manual's description of the assistance is copied from First Place and says "qualified first-time homebuyers and qualified Veterans are eligible to receive" the forgivable second. Its own eligibility section says first-time or repeat, and MHDC's public Next Step page says the program gives first-time and repeat homebuyers the option of cash assistance.
We read that as boilerplate that did not get updated, and we treat repeat buyers as eligible for the assistance, because two of the three sources say so plainly and the third is a copied paragraph. If your file is close to the line, we confirm it with MHDC at reservation rather than assume. That is the honest version.
What Next Step costs you
Nothing, in the structure. Same 4% forgivable second, same five-year cliff and 1/60 monthly burn-down, same 640 minimum score, same underwriting. MHDC down payment assistance is a forgivable second loan, not a grant, on either program.
The one thing to know is that First Place is the below-market-rate bond programme aimed at buyers under the lower income limits. Where both are open to you, the comparison is a real one and we run it rather than guess. We do not publish rate figures on this site, so that comparison is a conversation with numbers in it, not a table here.
Who should be asking about Next Step
- Repeat buyers, who are ineligible for First Place unless they are a qualified Veteran.
- Households just over the First Place income limit. A Kansas City couple at $120,000 is over the $113,400 non-targeted limit and comfortably under Next Step's $136,080.
- Buyers above the non-targeted price cap, though at Missouri's typical values that is rare. Kansas City's typical value is $327,320.
- Anyone told they earn too much for Missouri assistance by someone who only checked First Place.
First Place · the two side by side · check your band.
Frequently asked questions
What is the MHDC Next Step program?
Next Step is MHDC's homebuyer program for buyers outside the First Place income limits. MHDC describes it as giving potential first-time and repeat homebuyers the edge they need, with higher income and purchase price limits than First Place and the option of cash assistance for down payment and closing costs. The assistance is the same 4% forgivable second loan, not a grant.
Do you need a targeted census tract to get Missouri's higher limits?
Not on Next Step. MHDC's limits sheet groups Next Step in the same column as targeted areas, so a Next Step buyer uses the targeted figures anywhere in Missouri without the property being in a targeted census tract. That is a $692,211 one-family purchase price limit instead of $566,354, and income limits up to $162,820.
What is the income limit for MHDC Next Step?
It runs from $116,520 for a one to two person household in most of Missouri up to $139,560 in the Columbia MSA, with three-or-more-person limits from $135,940 to $162,820. Those are the targeted-area figures, effective May 1, 2026, which Next Step carries statewide. The equivalent non-targeted First Place floor is $97,100 and $111,665.
Can I use Next Step if I already own a home?
Yes. MHDC's Next Step eligibility section states the borrower may be a first-time homebuyer or a repeat buyer, and the program page describes it as serving first-time and repeat homebuyers with the option of cash assistance. First Place, by contrast, is limited to first-time homebuyers and qualified Veterans. MHDC down payment assistance is a forgivable second loan, not a grant.
Is the assistance smaller on Next Step than on First Place?
No. Both programs provide a 100% forgivable second loan equal to 4% of the total mortgage amount, with the same schedule: nothing forgiven for five years, then 1/60 per month until it is fully forgiven at year ten. The minimum credit score of 640 is the same as well. The programs differ on who is eligible and on the income and price ceilings, not on the assistance itself.
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.