First Place Loan Program (Cash Assistance Loan option)
Missouri Housing Development Commission (MHDC)
Amount: Up to 4.5% of the mortgage loan amount as a forgivable second loan for down payment and closing costs (increased from a prior 3.5% Cash Assistance Loan option). Some MHDC materials describe a 100% forgivable second loan equal to 4% of the total mortgage amount; the second loan diminishes by 1/60th per month starting after year 5 and is fully forgiven at year 10 as long as the borrower keeps the home as a primary residence and keeps the first mortgage in place. Borrowers instead can choose a below-market interest rate option in lieu of cash assistance. No minimum down payment or minimum loan amount is required.
Type: State HFA program - forgivable second mortgage (0% interest) or below-market-rate first mortgage, used with FHA, VA, USDA, or HFA Advantage conventional first mortgages
Must be a first-time homebuyer (defined as not having owned a home in the past 3 years) or a qualified Veteran (Veterans are exempt from the first-time buyer requirement); minimum FICO credit score of 640 (660 for manufactured homes), though individual participating lenders may set stricter minimums; maximum DTI is 45% for government loans (50% if credit score is 680+) and 50% for conventional loans; must meet county-specific household income limits and purchase price limits set by MHDC (varies by county/household size — not a single statewide figure); must complete homebuyer education; must use an MHDC-Certified Lender; can be combined with an MHDC Mortgage Credit Certificate (max purchase price for MCC eligibility cited at $510,939 in current program materials).
Next Step Loan Program
Missouri Housing Development Commission (MHDC)
Amount: Up to 4% of the total first mortgage loan amount, provided as a 100% forgivable, 0%-interest second mortgage for down payment and/or closing costs. Fully forgiven after 10 years if the home remains the borrower's primary residence and the first mortgage stays in place; no minimum down payment or minimum loan amount required.
Type: State HFA program - forgivable second mortgage, used with FHA, VA, USDA, or conventional (30-year fixed) first mortgages
Open to both first-time AND repeat homebuyers (unlike First Place); designed for buyers who exceed First Place's income limits, since Next Step has higher household income caps (specific dollar figures vary by county and household size and are published by MHDC/lenders rather than a single statewide number); minimum FICO credit score of 640; max DTI of 45% (up to 50% with a 680+ credit score, or 50% for conventional loans); must meet MHDC purchase price limits; must use an MHDC-Certified Lender and complete required homebuyer education.
Columbia Down Payment Assistance Program
City of Columbia, Missouri (Office of Neighborhood Services), cited as an example of a significant local program supplementing state-level MHDC options
Amount: Up to $10,000 as a 0%-interest, 10-year deferred loan that is forgiven at the end of the 10-year term if occupancy/program conditions are met
Type: Municipal down payment assistance - forgivable/deferred loan
Minimum credit score of 600; household income limits apply (based on area median income); must be used for an eligible primary residence within Columbia city limits; typically layered on top of, or used independently from, MHDC financing