How does MHDC down payment assistance work?

The Missouri Housing Development Commission offers programs that provide a second mortgage (or grant) covering some or all of your down payment and closing costs. It pairs with FHA, Conventional, VA, and USDA financing. Bryan can quote both with and without MHDC so you can compare.

Do I need to be a first-time buyer to use first-time-buyer programs?

Most programs define 'first-time' as having not owned a primary residence in the last 3 years. So if you owned a home, sold it, and have been renting for 3+ years, you typically requalify as a first-time buyer.

How long does the home buying process take in Missouri?

Pre-approval: 24–48 hours. House shopping: typically 30–90 days. Contract to closing: 21–35 days for most Missouri transactions. Start to finish, 60–120 days is common.

What's the most common first-time buyer mistake?

Shopping for homes before getting fully pre-approved. The number two mistake is getting pre-approved by the listing agent's preferred lender without comparing — you almost always leave money on the table.

First-Time Buyers · Missouri

First-Time Home Buyer Guide for Missouri

Everything you actually need to know — credit, down payment, MHDC programs, timing, and the order to do things in.

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Quick Answer

In one paragraph

A first-time home buyer in Missouri has more programs available than ever: 3.5% down via FHA, 3% down via Conventional 97, 0% down via VA or USDA, and down payment assistance through the Missouri Housing Development Commission (MHDC). Most buyers can be pre-approved in 24–48 hours and close in 21–35 days from a ratified contract.

Key Takeaways

What to remember

You do not need 20% down. Most Missouri first-time buyers close with 0–5% down.
MHDC offers down payment assistance that pairs with FHA, Conventional, VA, and USDA loans.
A fully underwritten pre-approval (not a generic letter) wins competitive Missouri offers.
Credit improvement of even 20 points before applying can lower your rate meaningfully.
Total cash to close is typically 3.5%–5% of the price; with MHDC it can be near zero.

Who this is for

Is this you?

Renters thinking about buying in the next 6–18 months
Buyers who've never owned a home (or haven't owned in 3+ years — also counts as first-time under MHDC)
Self-employed buyers wondering if they qualify
Couples planning a wedding/move and want to buy in the same window
Anyone unsure whether to keep renting and saving, or buy now

Requirements & Guidelines

The numbers that matter

Credit score: 580+ FHA / 620+ Conventional
Down payment: 0%–5% typical for first-time buyers
Income docs: 2 years W-2s or tax returns
Asset docs: 60 days of bank/brokerage statements
Employment: Stable history; 2 years self-employed if SE
MHDC eligibility: Income & price limits vary by county

Bryan's Expert Insight

What experience teaches

The right order matters more than the right loan. Get fully pre-approved before you shop — not after. I see Missouri first-time buyers lose homes because they fell in love with a property, then started the loan process, then found out they were $20,000 short or 20 points away from a better rate. Two days of pre-approval up front saves months of heartbreak.

— Bryan Jones, Senior Mortgage Broker · 14+ years · 1,000+ closed loans

Frequently Asked

Common questions, direct answers

VA and USDA: 0% if eligible. Conventional 97 and HomeReady: 3%. FHA: 3.5%. Layered with MHDC down payment assistance, total cash to close can be very close to zero for income-qualified buyers.

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