Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
Open to first-time and repeat buyers
More affordable interest rates
Is 100 percent forgivable
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Higher interest rates if you receive down payment assistance
Must occupy the home within 60 days of purchase
MHDC Next Step Program
Designed for both first-time and repeat homebuyers, MHDC’s Next Step Program provides affordable mortgages with or without down payment assistance. The program includes conventional, FHA, VA and USDA loans.
The income limits for each county, which vary by household size, are generally higher than the income limits of the First Place program, making a Next Step loan an option for first-time buyers who don’t meet the First Place criteria.
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
Open to first-time and repeat buyers
More affordable interest rates
Is 100 percent forgivable
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Open to single-family homes, duplexes, townhomes and other types of properties
Is 100% forgivable
Cons
Higher interest rates if you receive down payment assistance
Must occupy the home within 60 days of purchase
MHDC Next Step Program
Designed for both first-time and repeat homebuyers, MHDC’s Next Step Program provides affordable mortgages with or without down payment assistance. The program includes conventional, FHA, VA and USDA loans.
The income limits for each county, which vary by household size, are generally higher than the income limits of the First Place program, making a Next Step loan an option for first-time buyers who don’t meet the First Place criteria.
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
Open to first-time and repeat buyers
More affordable interest rates
Is 100 percent forgivable
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
More affordable interest rates
Open to single-family homes, duplexes, townhomes and other types of properties
Is 100% forgivable
Cons
Higher interest rates if you receive down payment assistance
Must occupy the home within 60 days of purchase
MHDC Next Step Program
Designed for both first-time and repeat homebuyers, MHDC’s Next Step Program provides affordable mortgages with or without down payment assistance. The program includes conventional, FHA, VA and USDA loans.
The income limits for each county, which vary by household size, are generally higher than the income limits of the First Place program, making a Next Step loan an option for first-time buyers who don’t meet the First Place criteria.
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
Open to first-time and repeat buyers
More affordable interest rates
Is 100 percent forgivable
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
Getting ready to buy your first home can be exciting and daunting all at once — especially in the competitive market of Missouri, where prices are up nearly six percent year-over-year, according to Redfin.
To help provide affordable homebuying opportunities to first-time buyers in the state, the Missouri Housing Development Commission (MHDC) has special programs for first-time or repeat homebuyers, military veterans and those purchasing homes in designated target areas. Through the agency, you could be eligible for a low- or no-down-payment mortgage with a lower interest rate and down payment assistance.
Missouri housing market statistics
Median home sales price, Jan. 2025 (Redfin): $251,500
Median down payment, Dec. 2024 (ATTOM): $20,000
Most affordable counties, Oct. 2024 (ATTOM): Atchison, Dunklin, Mississippi, New Madrid, Pemiscot, Sullivan
Missouri first-time homebuyer loan programs
MHDC First Place Loan Program
The MHDC First Place Loan is for first-time homebuyers (or those who haven’t owned a home in the past three years) and veterans. The program comes with a competitive fixed rate, often below-market, which can apply to a conventional, FHA, VA or USDA loan.
First Place loans are available with or without down payment assistance. No-assistance First Place loans have a lower interest rate than First Place loans paired with down payment help.
If you’re a military veteran, you don’t need to be a first-time buyer, but you do need a DD Form 214 or statement of service showing that you’ve served on active duty within the past 25 years.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
More affordable interest rates
Open to single-family homes, duplexes, townhomes and other types of properties
Is 100% forgivable
Cons
Higher interest rates if you receive down payment assistance
Must occupy the home within 60 days of purchase
MHDC Next Step Program
Designed for both first-time and repeat homebuyers, MHDC’s Next Step Program provides affordable mortgages with or without down payment assistance. The program includes conventional, FHA, VA and USDA loans.
The income limits for each county, which vary by household size, are generally higher than the income limits of the First Place program, making a Next Step loan an option for first-time buyers who don’t meet the First Place criteria.
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Must meet income limits (vary by location and household size)
For one-family residences: Home cannot exceed purchase price limits of $510,939 (non-targeted areas) or $624,481 (targeted areas)
For two-family residences: Home cannot exceed purchase price limits of $654,187 (non-targeted areas) or $799,562 (targeted areas)
Pros
Open to first-time and repeat buyers
More affordable interest rates
Is 100 percent forgivable
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
Higher interest rates if you combine it with down payment assistance
Must occupy the home within 60 days of purchase
Missouri down payment assistance and grants
MHDC down payment assistance
Borrowers who qualify for an MHDC First Place or Next Step mortgage can receive up to 4 percent of the mortgage amount in a forgivable second mortgage. This second mortgage doesn’t need to be paid back as long as you stay in the home for 10 years.
Pros
Repayment isn’t required (as long as you stay in the home for 10 years)
Can be used for down payment and closing costs
Open to first-time and repeat buyers
Cons
Funds must be repaid if you don’t maintain the home as your primary residence for 10 years
City specific homebuyer assistance programs
Springfield Down Payment Assistance Loan Program
If you’re a first-time buyer, displaced homemaker or single parent in Springfield, you can receive up to $9,000 in down payment and closing cost assistance. The funds are provided as a deferred loan, which is forgiven after 10 years (as long as you’ve maintained the property as your primary residence). You’ll need a conventional, FHA or VA loan to qualify for the program.
Must be a first-time buyer, displaced homemaker or single parent
Must have a credit score of 650 or higher
Debt-to-income ratio cannot exceed 43 percent
Must purchase a home in an eligible area of Springfield
Home purchase price cannot exceed $150,000
Household income cannot exceed 80 percent of the area median income (varies by household size)
Must complete a homebuyer education class
Pros
Loan is forgivable after 10 years of living in the home as a primary residence
Zero interest loan
Can be used for down payment and closing costs
Cons
Must repay the loan if you move or the home is no longer a primary residence before 10 years
Cannot be used with adjustable-rate mortgages
Only available for single-family properties
Columbia Homeownership Assistance Program
Like Springfield, Columbia also provides assistance in the form of a zero-interest, 10-year forgivable loan. First-time buyers and displaced homemakers can receive up to $10,000 to put toward a down payment and closing costs when purchasing a home within Columbia city limits.
Must be a first-time buyer or displaced homemaker
Must have a credit score of 600 or higher
Must purchase a home in an eligible area of Columbia
Home cannot exceed purchase price of $237,000 (existing home) or $273,000 (new construction home)
Must meet income limits (vary by household size)
Must contribute at least $500 of own funds
Must complete homeownership counseling
Pros
Funds don’t require repayment if the home is your primary residence for at least 10 years
Can be used for down payment and closing costs
Requires a minimum 600 credit score
Can be used for single- or multi-family properties
Has zero interest
Cons
Repayment required on a prorated basis if you move, sell or refinance within the first 10 years
Must provide $500 of own funds toward the home purchase
Cannot be used for prepaid expenses such as taxes and insurance
Other Missouri homebuyer assistance programs
Mortgage credit certificate (MCC)
A mortgage credit certificate (MCC) allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, usable for as long as they live in their home. The MCC in Missouri is worth up to $2,000 per year.
Must be a first-time buyer, qualified veteran or repeat buyer in a target area
Must have a credit score of 640 or higher
Debt-to-income ratio cannot exceed 45 percent (or 50 percent for FHA and Government Sponsored Entities, but you’ll need a credit score of at least 680)
Pros
Includes conventional and government-backed loans
Includes single-family homes, duplexes, townhomes and other types of properties
Cons
To get the maximum MCC credit rate (45 percent), you’ll need to pair it with the Next Step Loan Program; otherwise, the standalone MCC credit rate is 25 percent
Other Missouri first-time homebuyer loans
In addition to Missouri state homebuying programs, consider any of these nationally available first-time homebuyer loan programs, including:
FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment of as little as 3.5 percent.
VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.
Get started
Now that you know some options available to first-time homebuyers in Missouri, you’re ready to get started with your home purchase. Here are some next steps:
Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number, if possible, before your home search.
Do your homework. For details on any of the Missouri Housing Development Commission’s homebuyer programs, connect with a participating lender in your area.
Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. By comparing lenders, you can find the most competitive interest rate and loan terms. Be sure to read lender reviews, as well, to get an idea of the customer experience.
Get preapproved. While house hunting, you’ll need a preapproval on hand from the lender you plan to work with to show sellers that you’re a serious buyer.
Research homeowners insurance policies. It’s also a good idea to shop around for a homeowners insurance company in Missouri. Comparing providers can help you save money and choose one with the best coverage for your needs.
