Missouri

MHDC Next Step Program

The Next Step Program is for Missouri first-time homebuyers and repeat buyers. It offers affordable mortgages with or without a down payment. MHDC offers conventional, FHA, VA, and USDA loan options, and you can purchase any home as long as it is within the purchase price limits by property type.

Each county’s income limits, which are generally variable by household size, are often more than the First Place program’s income limits, making the MHDC Next Step Program a suitable choice for Missouri first-time homebuyers who don’t fulfill the criteria of the First Place Program.

MHDC First Place Loan Program

The Missouri Housing Development Commission's First Place Loan is designed for first-time homebuyers and veterans in Missouri. This program offers eligible candidates a competitive fixed rate, sometimes below-market, that may be applied toward any loan type: conventional, FHA, VA, and USDA.

First Place loans may be obtained with or without down payment assistance in Missouri. First Place loans with no down payment assistance are issued at a lower interest rate than First Place loans with down payment assistance.

In order to qualify, you must meet the following first-time home buyer Missouri requirements:

• Must fulfill the purchase price limits outlined by MHDC.
• The purchase price limit for a single-family home is $481,176. The limit is considerably greater for targeted areas: $588,104.
• The property's location and the number of people in your family determine the qualifying income restrictions.
• Almost all kinds of homes are eligible for participation in this program: single-family properties, one-half of a duplex home, or whole duplex ( as long as you reside in one of the units), semi-detached houses, condos, townhomes, as well as a number of manufactured homes.
• If you're a military veteran, you don't have to be a Missouri first-time homebuyer. Still, you must present DD Form 214 or a statement of service that indicates that you served on active duty in the preceding 25 years.

MHDC down payment assistance

If you are eligible for a First Place or Next Step MHDC mortgage, a second loan of up to 4% of the entire mortgage, also known as the forgiving second mortgage, may be provided; you do not have to repay this if you live in the property for 10 years.

USDA Loan

This first-time home buyer loan in Missouri allows borrowing without a down payment but is only eligible for a USDA-recognized rural area. The required credit score is 640.

Mortgage credit certificate (MCC)

The MCC stands for mortgage credit certificate, which allows first-time and veteran homebuyers to get a mortgage interest deduction from their federal tax as a credit. The credit is usable as long as the homebuyer resides in the property. An MCC Missouri costs $2,000 per year.

FHA Loan

If you lack a sufficient credit score or want to pay a low down payment, then an FHA loan could suit you. This type of first-time home buyer loan in Missouri is easier to access and has a minimum credit score requirement of 580; the down payment could be 3.5%.

VA Loan

These are available to military members and veterans and have no requirement for a down payment.

Good Neighbor Next Door program

This HUD program requires extremely low down payment amounts on homes in specific areas. Additionally, it helps you save 50% on the purchase price of your new home in Missouri.