MHDC Rates & Programs 2026: Missouri First Place Loans + Cash Assistance DPA
The Missouri Housing Development Commission offers one of the Midwest's strongest first-time buyer packages: below-market mortgage rates, a Cash Assistance Loan covering 4% of your loan for down payment — forgiven after 10 years — and a tax credit worth up to $2,000 every year. Here is the complete October 2026 guide.
Check Your MHDC Eligibility — Free
See if you qualify for First Place + 4% Cash Assistance. Takes 2 minutes, no credit pull.
~5.99%
MHDC Rate (Oct 2026)
non-CAL First Place
4%
Cash Assistance
of loan, 0% interest
640
Min Credit Score
all MHDC programs
$2,000
Annual Tax Credit
MCC — every year
First-time buyer in Missouri? The Cash Assistance Loan covers 4% of your mortgage at 0% interest — fully forgiven if you stay 10 years. That is $10,000 free on a $250K loan.
Check My DPA Options →MHDC Programs 2026 — Comparison Table
| Program | Rate (est.) | DPA / Benefit | Min Credit | Terms |
|---|---|---|---|---|
| 💰 CASH ASSISTFirst Place Loan — Cash Assistance | ~6.35% | 4% of loan (CAL) | 640 | Forgivable after 10 yrs |
| 📉 LOWEST RATEFirst Place Loan — Non-CAL | ~5.99% | None (lowest rate) | 640 | N/A |
| 🔁 MOVE-UP OKNext Step Program | ~6.15% | Varies | 640 | Varies |
| 🧾 MCC CREDITMortgage Credit Certificate (MCC) | N/A | Up to $2,000/yr | 640 | Annual tax credit |
Rates as of Oct 2026 — estimates for comparison. Verify the posted statewide rate at mhdc.com or with an MHDC participating lender.
MHDC loans work with FHA, VA, USDA, and conventional products. Compare MHDC lender fees — the rate is set statewide but lender fees vary significantly.
Who Qualifies for MHDC in 2026?
First Place requires first-time buyer status in most counties — waived for veterans anywhere in Missouri and for purchases in federally targeted areas. The Next Step program covers repeat and move-up buyers. The main gates are income, purchase price, credit, and primary-residence rules.
First-Time Buyers
Veterans (any county)
All Missouri Counties
640+ Credit Score
Income Limits by County
FHA, VA, USDA, Conventional
Not sure if you qualify? Check MHDC eligibility with a participating lender — income is verified as part of standard pre-approval.
MHDC Income & Price Limits 2026
| Program | Max Household Income | Max Sales Price | Buyer Type |
|---|---|---|---|
| First Place Loan (CAL or non-CAL) | ~$95K-$110K by county | ~$375K-$425K | First-time (vets & targeted areas exempt) |
| Next Step (move-up buyers) | Higher county limits | Similar caps | Repeat & move-up buyers |
| Mortgage Credit Certificate | County AMI limits | Varies by county | First-time, vets, targeted counties |
Limits adjust annually — verify current figures at mhdc.com or with a participating lender.
Income over limits? Compare conventional lenders with no income caps. Credit below 640? Boost your score with Spike — or explore FHA from 580 FICO.
Ready to buy in Missouri with MHDC?
Get pre-approved with an MHDC participating lender — 3 minutes, no credit pull to start.
How to Apply for MHDC — Step by Step
- 1
Confirm county income & price limits
Check the current limits for your Missouri county at mhdc.com — they differ between Kansas City, St. Louis, and rural counties.
- 2
Find an MHDC participating lender
The rate is set statewide, but only approved lenders originate First Place loans — and their fees vary. Compare 2+ lenders.
- 3
Choose CAL or non-CAL
CAL gives 4% down payment help at a slightly higher rate (~6.35%); non-CAL gives the lowest rate (~5.99%) with no DPA.
- 4
Request the MCC at application
The $2,000/yr tax credit must be elected up front — it cannot be added after closing.
- 5
Buy and close — CAL funds at closing
The 0% second loan funds alongside your first mortgage. Stay 10 years and it is 100% forgiven.
MHDC FAQ 2026
What is the MHDC rate in October 2026?
MHDC posts a statewide rate for First Place loans that runs below the conventional market — approximately 5.99% for the non-CAL option and ~6.35% with Cash Assistance, versus ~6.85% for standard conventional 30-year loans as of October 2026. The rate is identical at every MHDC participating lender; only fees differ. Verify the current posted rate at mhdc.com before locking. Compare MO lender rates — free →
How much down payment assistance does MHDC give?
The First Place Cash Assistance Loan (CAL) provides 4% of your first mortgage amount as a second loan for down payment and closing costs. It carries 0% interest, requires no monthly payments, and is fully forgiven after 10 years of ownership. On a $250,000 loan, that is $10,000 of free help. Check my 4% Cash Assistance eligibility →
Do I have to be a first-time buyer for MHDC?
For First Place loans: yes in most counties — the rule is waived for veterans and for homes in federally targeted areas. The Next Step program serves move-up buyers and repeat buyers who do not meet the first-time definition, with slightly different rates and limits.
What credit score do I need for MHDC loans?
Minimum 640 across MHDC programs for FHA, VA, USDA, and conventional loans. Below 640? MHDC-funded homebuyer counseling agencies offer free credit coaching — most borrowers reach the threshold within 3-6 months.
What are the MHDC income limits in 2026?
First Place income limits are set by county and household size — typically around $95,000-$110,000 for 1-2 person households and higher for 3+, with targeted counties allowing more. There is also a maximum purchase price around $375,000-$425,000 depending on county. Verify exact current limits at mhdc.com — they adjust annually. Get pre-approved — free, 2 min →
How does the MHDC Mortgage Credit Certificate work?
The MCC converts part of your mortgage interest into a dollar-for-dollar federal tax credit — up to $2,000 every year you live in the home, for the life of the loan. Unlike a deduction, a credit reduces taxes owed directly. Over 10 years that is up to $20,000. You must request it at application — it cannot be added after closing.
Related State Housing Program Guides
Ready to Buy Your Missouri Home with MHDC?
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Check My MHDC Eligibility → FreeTakes 2 minutes · 4% Cash Assistance · 640+ credit needed