Missouri Housing Development Commission (MHDC) Programs:
Updated September 2026MHDC offers 30‑year fixed mortgages through certified lenders (First Place and Next Step) with below‑market first‑mortgage rates and optional down payment assistance paired to the loan. Always confirm current rates, income/purchase limits, and program rules with an MHDC‑approved lender or MHDC directly at mhdc.com/First Place.
Missouri First‑Time Homebuyer Mortgage Programs:
Eligibility: Typical MHDC rules: first‑time buyer (no primary residence in prior 3 years) or targeted‑area exception; household income must be within MHDC area limits; occupancy as primary residence required.
Offerings: 30‑year fixed mortgages (FHA, VA, USDA, or conventional) through certified lenders with options for cash assistance (First Place Cash Assistance) or slightly lower rates without assistance.
Requirements:
- Income & purchase caps: MHDC limits are county/MSA specific — see the official 2026 table. Typical examples (MHDC 2026): All other areas ~$97,100 (1–2 persons) / ~$111,665 (3+); St. Louis & Kansas City MSAs commonly in the $113k–$136k range depending on household size. See MHDC’s official limits and purchase price caps. MHDC 2026 income & purchase limits (PDF).
- Minimum credit score: MHDC lender guidance commonly shows ~640 as the program baseline (lenders may set overlays). See MHDC lender resources for current guidance. MHDC lender resources.
- Debt‑to‑income (DTI): Typical MHDC guidance targets ~45% DTI for middle credit ranges (640–680) and allows up to ~50% for stronger credit profiles (680+); lenders may apply overlays.
- Homebuyer education: Often required for MHDC loans; available via MHDC‑approved counselors or lender partners.
Down Payment Assistance (DPA) Options:
MHDC Cash Assistance (First Place Cash Assistance): MHDC’s Cash Assistance Loan provides 4% of the first mortgage amount to help with down payment and closing costs for eligible borrowers. The FAQ and program materials describe the 4% Cash Assistance option and the non‑cash assistance loan (slightly lower rate). Confirm mechanics (deferred vs forgivable, reimbursement to lenders, and recapture rules) with your MHDC lender. First Place FAQ (PDF) and MHDC First Place.
How it works: Buyers typically pair the 4% DPA with an MHDC first mortgage; some buyers instead choose the non‑assistance loan (slightly lower rate) if they have funds for closing. Terms (forgivable vs deferred, and exact forgiveness period) can vary — confirm with your lender.
About 'Heroes' Offers
MHDC does not publish a single statewide "Missouri Heroes" program. Some lenders, local HFAs, or private "Homes for Heroes"‑style partners may offer special incentives to teachers, first responders, healthcare workers, and veterans. Ask your lender or local housing office whether a local “hero” incentive exists — do not assume a statewide MHDC program by that name.
Local Programs (Examples):
Many cities and counties run limited DPA NOFAs or forgivable loan programs — funds and caps change frequently. Verify current availability on each program’s official page.
St. Louis / St. Louis County
HomeSTL (SLDC): City‑run forgivable assistance for eligible buyers; program guidelines describe assistance up to $50,000 (0% deferred second, prorated forgiveness over 5/10/15 years depending on award) for eligible first‑time buyers at or below 80% AMI. Note: SLDC now reports that HomeSTL funds were fully reserved as of Aug 31, 2026. See the SLDC HomeSTL page and the program guidelines for details and current reservation status. HomeSTL — SLDC and program guidelines (Program Guidelines PDF).
Kansas City / Jackson County
Regional and nonprofit DPA: Examples include nonprofit grants and county/lender programs. Habitat for Humanity Kansas City has run a DPA grant (partnering with funders like Health Forward and Jackson County) that has provided up to $10,000 for eligible buyers in parts of the KC metro (income and county limits apply). The Habitat KC DPA page currently notes the program and application materials and is labeled as closed when we checked — confirm current status on their site. Habitat KC — DPA and KCMO Housing.
Springfield / Greene County
Springfield Housing Authority & local partners: The Springfield Housing Authority runs homeownership support (participant counseling/education often required); local nonprofits sometimes offer neighborhood grants — confirm amounts and eligibility on the housing authority site. Springfield Housing Authority — Homeownership.
Additional Information:
- USDA loans: 100% financing (no down payment) is available for eligible rural/suburban properties via the USDA Single Family Guaranteed Loan Program; location and income limits apply. USDA RD — SFH Guaranteed.
- VA loans: Eligible veterans and active service members can often obtain VA‑guaranteed loans with no down payment requirement (verify lender overlays). VA Home Loans.
- FHA loans: FHA minimum down payment is typically 3.5% for borrowers with a credit score of 580+ (higher down payment required for lower scores in some cases). See FHA guidance. FHA overview (CFPB/HUD).
Missouri programs emphasize flexible DPA and targeted support.
Always confirm specifics (income limits, purchase price caps, forgiveness terms) with an MHDC‑approved lender or the program administrator. For MHDC program pages and current rates see mhdc.com.
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