If you are buying your first home in Missouri and you do not have a big pile of cash, you should know about the Missouri Housing Development Commission, or MHDC. They run homebuyer programs through certified lenders.
I am not a lender, and I do not approve loans. I do help first-time buyers in Kansas City and the surrounding areas understand that these programs exist, then I point them to a lender who can check eligibility.
MHDC currently describes two main programs: First Place and Next Step. You can read both on MHDC’s own site: the Homebuyer Programs page, the First Place Program page, and the Next Step Program page.
First Place
According to MHDC, First Place is meant for potential first-time homebuyers and qualified Veterans. It offers mortgage financing with interest rates that are lower than regular market rates.
For buyers with limited savings, there is an option for cash assistance toward the down payment and closing costs. Loans are made by certified lenders on eligible property in Missouri. MHDC sets the interest rates and allowable closing costs, and the public program page says there is no minimum down payment or minimum loan amount.
MHDC’s First Place Loan Program Operations Manual (revised October 5, 2026) goes into more detail. It describes optional down payment assistance as a 100% forgivable second loan equal to 4% of the total mortgage amount, used for down payment and closing costs.
The manual says that second loan is forgiven if you stay in the home and keep the original loan for ten years. After year five, it begins diminishing monthly until year ten. If you sell or refinance during those ten years, you repay all or part of the assistance. Program terms can change, so confirm the current details with an MHDC certified lender.
The same manual lists minimum eligibility pieces that include first-time buyer or qualified Veteran status, a minimum credit score of 640 (or 660 for manufactured homes, noted as subject to change), debt-to-income limits, household income within published limits, an eligible property, and a purchase price within published limits. It also defines a first-time homebuyer, in part, as someone who has not had a present ownership interest in a primary residence for the past three years. Lenders can require a higher score than MHDC does, and the income and price limits are updated each year. Your lender will tell you which numbers apply to you.
Next Step
MHDC describes Next Step as a program for potential first-time and repeat homebuyers who are outside the First Place income limits. It also offers the option of cash assistance for down payment and closing costs, through certified lenders, on eligible Missouri property. The public page is here: Next Step Program.
The Next Step manual (also revised October 5, 2026) describes the same 4% forgivable second loan over ten years. It says you can be a first-time or repeat buyer, and its income and purchase price limits are higher than First Place. The manual is not perfectly clear on whether repeat buyers get the down payment help, so ask an MHDC certified lender if it applies to you.
What I want you to take from this
These programs can make a first home possible when savings are tight. They are not automatic, and they are not a match for every file.
You have to use an MHDC certified lender. The home has to be in Missouri. Income and purchase price caps apply, and they vary by area.
MHDC publishes updated income and purchase price limits for lenders (a 2026 limits file is listed on their lender resources page, noted as updated May 12, 2026). I am not going to invent a Kansas City income cap here because it would go stale.
If you are buying on the Kansas side of the metro, Missouri MHDC programs will not apply to that property. Kansas has its own housing resources. Ask a lender which Kansas programs, if any, fit your file.
I work with Kaden Roller as a lender, and you can use someone else. Ask whoever you use whether they are MHDC certified and which program, First Place or Next Step, even applies. Then we can look at homes that fit the loan instead of falling in love with a house that the program cannot buy.
For the rest of the cash you may still need, see how much you need to buy your first home and FHA vs conventional.
Questions I hear a lot
Do I have to be a first-time buyer for MHDC?
First Place is aimed at first-time buyers and qualified Veterans. MHDC generally treats first-time as not having owned a primary residence in the past three years.
Next Step is described as open to first-time and repeat buyers with higher income limits. A certified lender should confirm which program fits you.
Is the down payment help a grant?
MHDC materials describe the assistance as a second loan, not a grant. MHDC's current manuals describe it as forgivable over ten years if you stay in the home and keep the original loan. If you sell or refinance before then, you repay all or part of it.
Can I use this on any house I like?
No. The property has to be in Missouri and meet program rules, including purchase price limits. The house also has to work with the first mortgage type, such as FHA or conventional.
Who do I apply with?
An MHDC certified lender, not me. MHDC has a lender locator on their site. I can help you prepare the house search once we know what you qualify for.
If you are buying your first home, we can walk through it together.
No pressure to sign anything on the spot. Just a conversation about your budget, timeline, and what you actually want.