First-Time Home Buyer Programs in Missouri

Missouri Housing Development Commission (MHDC) Programs:

First Place Loan Program:

Eligibility: First‑time homebuyers (no primary residence in 3 years) or veterans.
Offerings: 30‑year fixed-rate FHA, VA, USDA, or conventional mortgage with option for:
 • 4% cash assistance forgiven over 10 years
 • Lower interest rate instead of cash assistance
Requirements:

• Income and purchase price limits apply. First Place details.
• Credit score ≥ 640; DTI ≤ 45% (50% w/ compensating factors).
• Homebuyer education required if using assistance.

Next Step Program:

Benefits: Available to first-time or repeat buyers; 4% forgivable second loan for down payment/closing costs, forgiven after 10 years.
Eligibility: Income and purchase price limits higher than First Place.
Details: Next Step info.

Mortgage Credit Certificate (MCC):

Benefits: Federal tax credit (~25–30% of mortgage interest, max $2,000/year).
Requirements: Must use an MHDC first mortgage; fee applies. MCC details.

Local Programs:

Columbia

Columbia DPA: Up to $10,000 forgivable second loan for first-time buyers. Program guide.

Springfield

Springfield DPA: Up to $9,000 forgivable second loan; income ≤ 80% AMI. Details.

Additional Information:

• FHA Loans: 3.5% down (credit ≥ 580).
• USDA Loans: 0% down in rural areas.
• VA Loans: 0% down for eligible veterans.