Down Payment Path

Down Payment Assistance Programs in Missouri

Missouri offers a variety of down payment assistance programs to help homebuyers manage upfront costs and achieve their goal of homeownership. These programs are accessible to both first-time and repeat buyers, ensuring financial support is available for a broad range of residents in the Show-Me State.

MHDC First Place Loan Program

The Missouri Housing Development Commission (MHDC) First Place Loan Program provides financial assistance to cover down payments and closing costs.

  • Offers up to 4% of the loan amount as assistance.
  • Assistance is structured as a forgivable second mortgage after a set period.
  • Pairs with fixed-rate FHA, VA, USDA, and conventional loans.
  • Open to eligible buyers meeting income and purchase price limits.

MHDC Next Step Program

The Next Step Program is designed to support buyers who may not qualify for the First Place Program.

  • Provides up to 4% of the loan amount for down payment and closing costs.
  • Assistance is offered as a deferred loan, with no payments required until the home is sold, refinanced, or paid off.
  • Available to both first-time and repeat buyers meeting income guidelines.

USDA Rural Development Loans

For buyers in rural parts of Missouri, the USDA Rural Development Loan offers affordable financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-eligible rural areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with MHDC programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides tax savings for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with MHDC mortgage products and down payment assistance programs.
  • Income and purchase price limits apply, but the program is widely accessible.

Local Assistance Programs

Many cities and counties in Missouri offer additional resources for homebuyers through grants or low-interest loans for down payments and closing costs.

  • Programs in areas like Kansas City, St. Louis, and Springfield provide targeted benefits for residents purchasing in revitalization neighborhoods.
  • Some initiatives offer enhanced assistance for public service workers or first responders.
  • Eligibility and funding levels vary by location.

Missouri’s down payment assistance programs are designed to make homeownership more affordable by reducing upfront costs. Whether you’re purchasing your first home or upgrading, these programs offer valuable resources to help you achieve your goal of owning a home in the Show-Me State.