Missouri’s housing market is known for being more affordable than many other parts of the country, but that doesn’t mean buying a home is without challenges. For many first-time buyers, rising prices and the upfront costs of a purchase, especially the down payment, remain significant hurdles.
To make homeownership within easier reach, Missouri offers a variety of down payment assistance (DPA) programs at the state, county, and local levels. These resources, which may come in the form of grants, forgivable loans, or deferred-payment options, are designed to ease the financial burden and help buyers get into a home sooner.
This overview highlights some of the most widely available and reliable DPA programs across Missouri. While it doesn’t capture every single local initiative, it focuses on the options most buyers are likely to encounter and will be updated as new programs launch or existing ones change.
Statewide Down Payment Assistance Programs
Missouri’s statewide programs include options administered by the Missouri Housing Development Commission (MHDC) and grants delivered through participating Federal Home Loan Bank of Des Moines members. These programs are among the most popular and accessible for buyers across the state.
First Place Program (MHDC)
The First Place Program offers a primary mortgage loan at below-market rates, plus an optional cash assistance loan equal to 4% of the mortgage amount to help cover down payment and closing costs. The assistance is structured as a 0% interest forgivable second mortgage. No portion is forgiven during the first five years; beginning after year five, 1/60 is forgiven each month until the loan is fully forgiven after 10 years. Selling or refinancing during the 10-year period requires repayment of the unforgiven balance.
Eligibility: Buyers must be first-time homebuyers (or veterans, or purchasing in targeted areas), have a minimum credit score of 640, meet purchase price limits, and stay within income caps.
Next Step Program (MHDC)
The Next Step Program is similar to First Place but is available to both first-time and repeat buyers. It provides cash assistance equal to 4% of the mortgage amount through a forgivable second mortgage. No portion is forgiven during the first five years; beginning after year five, 1/60 is forgiven each month until the loan is fully forgiven after 10 years. Selling or refinancing during the 10-year period requires repayment of the unforgiven balance. Borrowers can choose to skip the assistance and get an even lower interest rate instead.
Eligibility: Buyers must meet higher income limits and purchase price caps than First Place, with a minimum credit score of 640.
FHLB Des Moines Home$tart Program
The FHLB Des Moines Home$tart program provides a $15,000 grant for down payment and closing costs through participating member financial institutions. The grant is subject to a five-year deed restriction.
Eligibility: Buyers must be first-time homebuyers with household income at or below 80% of AMI, purchase an owner-occupied primary residence within applicable price limits, and complete an approved financial literacy course.
FHLB Des Moines Native American Homeownership Initiative
The Native American Homeownership Initiative (NAHI) provides a $25,000 grant for down payment and closing costs through participating FHLB Des Moines member institutions. The grant is subject to a five-year deed restriction.
Eligibility: Qualifying Native American, Alaska Native, and Native Hawaiian households must have income at or below 80% of AMI and purchase an owner-occupied primary residence within the FHLB Des Moines district. First-time homebuyer status is not required.
Down Payment Assistance Programs by County
Missouri has several regional programs that offer down payment assistance across multiple counties and municipalities.
Beyond Housing – Down Payment Assistance Program
The Beyond Housing Down Payment Assistance Program is available in St. Louis County, Jefferson County, St. Charles County, the City of O’Fallon, and the City of Florissant. Assistance is available up to $7,000 in Jefferson County and St. Louis County, $8,000 in Florissant, and $10,000 in St. Charles County and O’Fallon. It is provided as a 0% interest loan with no monthly payments and is forgiven over five years. Moving, selling, or transferring title during that period requires prorated repayment.
Eligibility: Buyers must be first-time homebuyers in St. Louis County and Jefferson County but not in St. Charles County, O’Fallon, or Florissant. They must complete a HUD-approved course and one-on-one counseling and meet the applicable income and purchase price limits.
Habitat for Humanity Kansas City Down Payment Assistance
The Habitat for Humanity Kansas City Down Payment Assistance Program provides a grant of up to $10,000 for down payment and closing costs. The grant does not need to be repaid and does not require a second deed.
Eligibility: Buyers must be first-time homebuyers or have not owned a home in the past three years, have household income at or below 80% of AMI, keep their debt-to-income ratio below 45%, complete homebuyer education, and purchase a home under contract in Jackson, Platte, or Clay County.
Down Payment Assistance Programs by City
Missouri cities with strong housing markets often run their own targeted programs. These can offer larger amounts of assistance than county-level programs.
Columbia – Homeownership Assistance Program
Columbia’s Homeownership Assistance Program offers between $10,000 and $20,000 for down payment, eligible closing costs, or principal reduction, provided as a 0% interest loan forgiven over 10 years. If the home is sold or rented during that period, the unforgiven balance must be repaid on a prorated basis. Buyers must contribute at least $500 of their own funds.
Eligibility: Buyers must be first-time homebuyers with income under 80% of AMI, and purchase a home within city limits under capped prices. Buyers cannot have more than $25,000 in readily available assets.
St. Louis City – HomeSTL Program
The HomeSTL Program offers up to $50,000 in forgivable assistance. Assistance from $1,000 to $24,999 is forgiven over five years, while assistance from $25,000 to $50,000 is forgiven over 10 years. An additional $10,000 is available for homes in Qualified Census Tracts.
Eligibility: Buyers must be first-time homebuyers with household income at or below 80% AMI and purchase in the City of St. Louis.
Joplin Homebuyer Assistance Program
The Joplin Homebuyer Assistance Program Phase 3 (JHAP-3) provides up to $40,000 in down payment and closing cost assistance for homes within Joplin city limits.
Eligibility: Buyers must meet the program’s applicable federal income limits and purchase a home within Joplin city limits.
Additional Down Payment Assistance Programs in Missouri
In addition to those already mentioned, these programs offer further opportunities for support.
Statewide Programs
- Chenoa Fund (Nationwide program available in Missouri)
County Programs
City Programs
Understanding AMI Requirements
As you've likely noticed, many of the Missouri down payment assistance programs on our list have income restrictions related to area median income (AMI). These income caps help ensure that program funds are being used to provide assistance to homebuyers most in need.
How It Works: The program you're interested in applying for requires that applicants earn no more than 80% of the area median income in the location where they're planning to buy. You use the Fannie Mae AMI Lookup Tool and discover the median income for your area is $115,000. You earn $85,000 per year, which is under the $92,000 income limit, so you may be eligible for down payment assistance.
Low Down Payment Mortgage Options for Missouri Homebuyers
Qualifying for down payment assistance can make it much easier to purchase a home, but so can choosing the right type of mortgage. Buyers in Missouri have a variety of low down payment loan options to choose from, including:
- Conventional Loans: Great for homebuyers with excellent credit and overall healthy finances. First-time buyers can purchase with as little as 3% down using a conventional loan .
- FHA Loans: Great to buyers with credit hiccups or higher debt. Down payments for FHA loans run just 3.5% in most cases.
- VA Loans: Great for veterans and active duty service members. VA loans have low rates, no monthly mortgage insurance, and require a 0% down payment.
- USDA Loans: Great for buyers in rural areas. If you're buying in a designed rural community, a USDA loan is a 0% down payment option with fees lower than FHA-backed alternatives.
Keep in mind, however, that not all down payment assistance programs worth every type of mortgage. Be sure to speak with your lender and down payment assistance provider to ensure compatibility before making an offer on a home.
Can Missouri Down Payment Assistance Help You Buy a Home?
Missouri’s housing market is more affordable than many parts of the country, but upfront costs can still be a challenge. With a mix of state, county, and city programs, first-time and eligible repeat buyers can access thousands of dollars in down payment assistance. Stay up to date with current mortgage rates and use our loan calculators to see how these programs could affect your monthly payments, and stay up to date on mortgage rates to make informed decisions.
