First-Time Homebuyer Programs in Missouri | MHDC, First Place & Next Step Loans
First-Time Homebuyer Programs in Missouri: A Simple Guide to MHDC, First Place, and Next Step Loans
Are you a first-time homebuyer in Missouri wondering how to afford your first home? You’re not alone—and the good news is that there are excellent programs available to help. In this post, we’ll break down the most important resources from the Missouri Housing Development Commission (MHDC), including the First Place Loan Program and the Next Step Program. These are two of Missouri’s most trusted down payment assistance programs designed to make homeownership more accessible and affordable. Whether you’re buying in Chesterfield, St. Louis, Kansas City, or Columbia, understanding these tools will help you move forward with confidence.
What is MHDC and Why Does It Matter?
The Missouri Housing Development Commission (MHDC) is a state-run agency that promotes safe, affordable housing for Missourians. One of its most powerful tools is offering low-interest mortgages and down payment assistance to eligible buyers through lenders like Guild Mortgage.
✅MHDC doesn’t lend directly—it works through approved lenders (like us!) to deliver these benefits.
The First Place Loan Program – Designed for First-Time Buyers
This program is geared toward first-time homebuyers and qualified veterans. Here’s what it offers:
🏠Competitive fixed interest rates
💰Cash Assistance Loan of 4% of the loan amount to help with down payment and closing costs
📉No repayment of the assistance unless the home is sold or refinanced within 10 years
📍Available in both targeted and non-targeted areas of Missouri
Eligibility basics:
– Must meet income and purchase price limits
– Minimum credit score typically 640
– Must be a first-time homebuyer (or buying in a targeted area)
The Next Step Program – Not Just for First-Timers
If you’ve owned a home before, you still have options. The Next Step Program offers similar benefits to the First-Place program but is open to repeat homebuyers. Perfect for Missourians who are ready to re-enter the housing market
or relocate. Features: Up to 4% down payment assistance Fixed-rate mortgages Income limits slightly higher than First Place (more flexible) Must occupy the home as your primary residence
Who Can Benefit?
These programs are ideal for:
✅First-time buyers needing help with down payment or closing costs
✅Veterans and active-duty military
✅Homebuyers purchasing in designated targeted areas (where income and purchase price limits are relaxed)
Why This Matters for Missouri Buyers in 2025
With home prices rising across Missouri and affordability top-of-mind for many families, using programs like First Place or Next Step can significantly reduce upfront costs and help buyers qualify for better financing.
Let’s Talk About Which Program Fits You Best
As a licensed Mortgage Loan Originator in Missouri, I’m here to walk you through the details and see if you qualify for one of these incredible tools. Let’s explore your options together and put a plan in place. Ready to learn more? Reach out today and take the first step toward owning your home in Missouri.
I am authorized to do business in the state of Missouri. Guild Mortgage Company; NMLS #3274; Equal Housing Opportunity; www.nmlsconsumeraccess.org. All information, loan programs & interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction. The MCC tax credit varies depending on the MCC program, state, county, or city and by loan amount, interest rate and term of the loan.