Down payment assistance in Missouri

4% of the total loan amount

A forgivable second mortgage with no monthly payments, paired with an MHDC First Place 30-year fixed first mortgage and usable for down payment and closing costs. The balance begins to diminish in year 6 and is fully forgiven after year 10 if the buyer stays in the home and keeps the original first mortgage. MHDC does not subordinate the DPA. Buyers who skip the DPA get a first-mortgage rate typically 0.25% to 0.50% lower.

Who qualifies: First-time homebuyers or qualified veterans. Income and purchase price limits (lower than Next Step). Must meet minimum credit score requirements (set in MHDC guidelines). Apply through an MHDC Certified Lender.

Missouri Housing Development Commission · Agency website → · Checked 2026-09-30

4% of the total mortgage amount

A 100% forgivable second loan paired with an MHDC Next Step first mortgage, for down payment and closing costs. It is forgiven if the borrower stays in the home and keeps the original loan for ten years. Next Step has higher income and purchase price limits than First Place.

Who qualifies: First-time and repeat homebuyers, including first-time buyers over the First Place income limits. Income and purchase price limits apply. Net rental income from a previous home counts against income limits. Apply through an MHDC Certified Lender.

Missouri Housing Development Commission (MHDC) · Agency website → · Checked 2026-09-30