Missouri First-Time Home Buyer Programs and Assistance
Missouri Housing Development Commission (MHDC) currently lists 2 programs for Missouri buyers, with down payment help up to 4% of the loan (about $11,256 on a median-priced home) through First Place Program. Figures below were read from the agency's own pages on September 11, 2026.
Missouri first-time buyer programs open now
Missouri Housing Development Commission (MHDC) is the state's housing finance agency (homebuyer programs page). It runs 2 down payment or closing-cost assistance programs. Has not owned a home or had an ownership interest in a primary residence for the past three years;
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| First Place Program source | Forgivable second loan | 100% forgivable second loan equal to 4% of the total first mortgage amount | Yes | 640 | Varies by area; see MHDC's 2026 Income and Purchase Price Limits document |
| Next Step Program source | Forgivable second loan | 100% forgivable second loan equal to 4% of the total first mortgage amount | No | 640 | Higher income and purchase-price limits than First Place; |
- First Place Program. Terms: Second loan forgiven if the borrower keeps the original loan and stays in the home 10 years; begins diminishing by 1/60 per month after year 5 until fully forgiven at year 10. A Non-Down-Payment-Assistance version is available at a 0.25-0.50 point lower rate for buyers who don't need cash assistance. Purchase price limit: Varies by area; see MHDC's 2026 Income and Purchase Price Limits document Must pair with: MHDC First Place 30-year first mortgage (FHA, VA, USDA-RD, or FNMA HFA Preferred/Freddie Mac HFA Advantage conventional) Program page
- Next Step Program. Terms: Second loan forgiven if the borrower keeps the original loan and stays in the home 10 years; begins diminishing by 1/60 per month after year 5 until fully forgiven at year 10. A Non-Cash-Assistance version is available at a 0.25-0.50 point lower rate. Purchase price limit: Higher than First Place; exact figures in MHDC's 2026 Income and Purchase Price Limits document Must pair with: MHDC Next Step 30-year first mortgage (FHA, VA, USDA-RD, or FNMA HFA Preferred/Freddie Mac HFA Advantage conventional) Program page
Mortgage credit certificate in Missouri
Missouri offers a mortgage credit certificate (Mortgage Credit Certificate (MCC), paired with a Next Step loan), a federal tax credit on part of the mortgage interest you pay each year, for as long as you live in the home. MCC program page
City and county programs in Missouri
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- Kansas City: Employee Homeownership Assistance Program. Partial-forgiveness loan for down payment and closing costs; dollar cap not confirmed on an official city page. Program. First-time buyers only. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Missouri's median-priced home (about $281,400), 3% down is roughly $8,442. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Missouri programs often add income and purchase-price limits, which is another reason to confirm the details with Missouri Housing Development Commission.
Other ways to save in Missouri
Buyer commission rebates are not available to most buyers in Missouri, so beyond Missouri Housing Development Commission assistance, your best levers are comparing lenders on rate and fees, shopping title and settlement services, and asking the seller for a closing-cost concession. See our Missouri closing-costs guide for the full picture.
Frequently asked questions
What first-time home buyer programs are available in Missouri?
Missouri Housing Development Commission (MHDC) lists 2 programs: First Place Program, Next Step Program. Down payment help runs up to 4% of the loan (about $11,256 on a median-priced home). Kansas City also run local down payment programs.
How much down payment assistance can you get in Missouri?
Up to 4% of the loan (about $11,256 on a median-priced home) through First Place Program (forgivable second loan). Other Missouri programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Missouri?
Not for every program. 1 of 2 Missouri programs are open to repeat buyers. Has not owned a home or had an ownership interest in a primary residence for the past three years; waived for buyers purchasing in a federally targeted census tract and for qualified Veterans who have not previously used a tax-exempt mortgage revenue bond loan under the Veterans exception
How much down payment do you need in Missouri?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Missouri's median-priced home (about $281,400), 3% is roughly $8,442. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Missouri programs also have income and purchase-price limits, so check with Missouri Housing Development Commission.
Can I combine assistance with a buyer rebate in Missouri?
Missouri does not permit buyer commission rebates, so first-time buyers here should focus on Missouri Housing Development Commission assistance programs and negotiating the buyer's-agent commission instead.
Official sources
- Missouri Housing Development Commission (MHDC)
- First Place Program, Learn More (MHDC, updated 11/18/2025)
- Next Step Program, Learn More (MHDC, updated 11/18/2025)
- MHDC Lender Resources (2026 Income and Purchase Price Limits link)
- Kansas City Homeownership EAP overview (CHES Inc., program administrator)
- Consumer Financial Protection Bureau: down payment options and how to prepare
Missouri program details last verified against Missouri Housing Development Commission on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Missouri Housing Development Commission and your lender before you rely on them.
See first-time buyer programs in all states