Homeowner Assistance


MHDC offers three programs for first-time homeowners in Missouri. Affordable interest rates, in combination with additional incentives offered by MHDC, allow prospective buyers to obtain mortgage financing in a competitive market. To apply, please contact a certified lender or start the pre-qualification process online. For more information call the Homeownership Department toll-free: 800-246-7973 or contact us.

*First-time homebuyers are defined as those persons who have not owned a home or had an ownership interest in a primary residence for the past three years.

*If you are a qualified Veteran, you do NOT have to be a first-time homebuyer to qualify for our First Place or Mortgage Credit Certificate loan programs.

First Place Loan Program

The First Place Loan Program gives first-time homebuyers and qualified Veterans the edge they need to purchase a home.

Cash Assistance Loan: Provides cash assistance to first-time homebuyers for down payment and closing costs. Qualified first-time homebuyers are eligible to receive a forgivable second mortgage of four percent of the loan amount to be used for down-payment and closing costs. The second mortgage will be forgiven if the borrower stays in the home/loan for ten years. The second mortgage will diminish after year five by 1/60 every month until year ten when it will be completely forgiven. No junk fees are allowed. The lender may charge standard closing costs.            

Non Cash Assistance Loan: Provides a lower interest rate to first-time homebuyers who do not need down payment or closing cost assistance. Qualified first-time homebuyers are eligible for lower interest rates than those who use the Cash Assistance Loan Program. These rates will result in a lower monthly payment. This program does NOT provide down payment and/or closing cost assistance. No junk fees are allowed. The lender may charge standard closing costs. 

Next Step Program

The Next Step Program gives first-time homebuyers and non-first-time homebuyers in Missouri who fall outside the income limits for the First Place Program the opportunity to purchase their own home with higher income limits and purchase price limits. It also gives the borrower the opportunity to receive cash assistance for down payment and closing cost assistance. Loan options include a first mortgage through MHDC with a 30 year fixed rate mortgage. Rates are set on a daily basis. The loan type can be FHA/VA/RD or conventional loans (rates could be higher for conventional loans). Down payment assistance is available. The Next Step Program may also use the Mortgage Credit Certificate (MCC) Program. 

Mortgage Credit Certificate (MCC)

The MCC Program provides income eligible first-time homebuyers with an opportunity to reduce the amount of federal income tax owed each year they own and live in their homes. The program gives qualified borrowers a non-refundable federal tax credit of 25 percent of the total amount of mortgage interest they pay each year. This tax credit allows prospective buyers to obtain mortgage financing in a competitive market. 

Additional Homeownership Program Resources

Home Repair Assistance

The Home Repair Opportunity (HeRO) Program provides funding to agencies in outstate Missouri that provide home repair grants to income qualifying residents of single family homes. Please review program eligibility and see the list of participating agencies to find home repair services in your area.

Emergency Mortgage Assistance                                

If you are a Missouri homeowner struggling to make your mortgage payment due to the COVID-19 pandemic, you may qualify for assistance. The Missouri State Assistance for Housing Relief (SAFHR) for Homeowners can provide mortgage reinstatement assistance, paid directly to your loan servicer. Please visit SAFHR for Homeowners to see if you qualify.