Getting ready to buy your first home can be exciting as well as daunting — especially in a competitive market like the one in Missouri, where prices have been trending upward as of late. The Missouri Realtors Association reports that the median home price in The Show Me State was $232,000 in November 2022, an 4.9 percent increase compared to a year earlier.

To help provide affordable homebuying opportunities to residents in the state, the Missouri Housing Development Commission 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 first-time homebuyer loan programs

MHDC First Place Loan Program

The Missouri Housing Development Commission’s (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 a Cash Assistance Loan (CAL) to help with a down payment and closing costs. Non-CAL First Place loans have a lower interest rate than CAL First Place loans, however.

To qualify for a First Place Loan, you’ll need to meet MHDC purchase price and household income limits. The purchase price can be up to $349,525 for a single-family home or $447,542 for a duplex. In target areas, the maximum price is higher: $427,198 for a single-family home or $546,995 for a duplex.

Qualifying income limits, on the other hand, are determined by the location of the property and the number of people in your household. You can see a detailed income limit table on the MHDC website.

Most types of homes are eligible for this program, including single-family homes, one-half of a duplex or duplex (so long as you’re living in one of the units), semi-detached houses, condominiums, townhomes and some manufactured homes.

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.

MHDC Next Step Program

Designed for both first-time and repeat homebuyers, MHDC’s Next Step Program provides affordable mortgages with or without the CAL down payment and closing cost assistance. Conventional, FHA, VA and USDA loans are available through this program. You can also purchase most types of homes, as long as they fall within the purchase price limit of $427,198 (single-family home) or $546,995 (duplex).

The income limits for each county, which vary by household size, are available on the MHDC website. They 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.