STL Home Buyer Journey
George Kindler
13 Years Of Real Estate Experience At Your Fingertips
Last updated August 25, 2026
St. Louis first-time buyers have several ways to reduce the cash needed to purchase a home, but the most important state-level options run through the Missouri Housing Development Commission. MHDC currently offers First Place and Next Step through certified lenders, with program-specific income, purchase-price and assistance rules. The right program depends on whether you qualify as a first-time buyer, your household income, the home price and the loan product your lender uses.
The Missouri Housing Development Commission currently organizes its homebuyer assistance around two primary programs: First Place and Next Step. Both are delivered through MHDC-certified lenders rather than directly from MHDC to the buyer.
First Place is designed around first-time-buyer and targeted-area eligibility. Next Step is the broader alternative for buyers who do not fit First Place requirements. Current rates, income limits and purchase-price limits change, so the program page and lender should be treated as the source of truth before a buyer makes a financing decision.
If you are a first-time buyer, start by asking an MHDC-certified lender whether you qualify for First Place. If you do not meet First Place rules, ask whether Next Step fits instead. Do not assume that “first-time buyer assistance” means free grant money. Some assistance is structured as secondary financing and the exact terms matter.
Line these up with the rest of your buying math: how much down payment you actually need, buyer closing costs, getting pre-approved, and the credit score you need to buy.
Most programs define "first-time buyer" as someone who has not owned a primary residence in the past three years -- not someone who has never owned. If you owned a home more than three years ago and have been renting since, you likely qualify. This means more buyers are eligible than commonly assumed.
Missouri Housing Development Commission's First Place program offers below-market interest rates and down payment assistance to first-time buyers who meet income and purchase price limits. In 2026, the program offers:
First Place funds are allocated annually and can run out before year end. Applications are processed through MHDC-approved lenders -- not directly through MHDC. Ask any participating lender about current availability. For the full rules, fees and transaction timeline, see our complete MHDC First Place & Next Step guide.
MHDC's Next Step program is similar to First Place but available to any buyer who meets income and purchase price limits -- not just first-time buyers. This is significant: if you owned a home previously and do not meet the first-time buyer definition, you may still access MHDC assistance through Next Step if the property is in a targeted area or you meet other criteria.
The City of St. Louis offers several homeownership assistance programs through the SLDC and related agencies:
St. Louis County Community Development administers homebuyer assistance programs funded through federal HOME and CDBG grants. These include:
County assistance programs have limited annual funding and are often depleted by mid-year. Contact St. Louis County Community Development early in the year or early in your homebuying timeline.
If you are interested in using any of these programs:
These programs cover one piece of the purchase: the money. For how they fit into everything else, from the home search to inspection, appraisal and closing, use the complete guide to buying a home in St. Louis.
How much down payment you actually need in St. Louis -- by loan type. Down Payment Guide for St. Louis Buyers → → What the pre-approval process looks like -- and what it does not guarantee. Mortgage Pre-Approval in St. Louis → →What first-time buyer programs are available in St. Louis?
The primary programs available to St. Louis first-time buyers are MHDC's First Place loan program (below-market rate plus down payment assistance up to 4%), St. Louis County down payment assistance (up to $5,000 for income-qualifying buyers), St. Louis City SLDC programs, and federal loan programs including FHA (3.5% down), VA (0% down for veterans), and USDA (0% down in eligible areas).
How do I qualify for MHDC first-time buyer programs in Missouri?
MHDC First Place requires that you have not owned a primary residence in the past 3 years, meet income limits (2026 St. Louis area: $113,500 for a 1-2 person household and $130,525 for 3+ outside targeted areas), purchase within price limits ($566,354 for a single-family home outside targeted areas), and have a minimum 640 to 660 credit score depending on loan type. Applications go through MHDC-approved lenders, not MHDC directly.
Do first-time buyer programs in St. Louis run out?
Yes. MHDC First Place funds are allocated annually and can be exhausted before year end. St. Louis County assistance programs are also funding-dependent. The earlier in the calendar year you apply, the better your chances of accessing these funds. Waiting until fall significantly increases the risk that funds have been depleted.
Can I use a first-time buyer program and an FHA loan together?
Yes. MHDC's First Place program is compatible with FHA loans and provides the below-market rate plus down payment assistance on top of the FHA structure. This combination is one of the most common configurations for first-time buyers in St. Louis who do not have VA or USDA eligibility.
This is one piece of the St. Louis home buying process. See how it all fits together:
📚 Complete St. Louis Buyer Guide →
Grew up in South St. Louis, lived in Dogtown for 6 years, now in South County. You'll find us at Wellspring on Lindbergh on Sundays. I'm not selling you a house — I'm showing you how to think about buying or selling a house.
Questions about what you are reading? I answer personally -- no team, no handoff.