Mortgage Credit Certificate (MCC) Program

Mortgage Credit Certificate (MCC) Program is sponsored by Missouri Housing Development Commission (MHDC). The MCC program helps first-time homeowners and veterans save money on their taxes by providing an income tax credit for the life of their homeownership.

Missouri First-Time Home Buyer | 2026 Programs and Grants First-Time Home Buyers Missouri First-Time Home Buyer: 2026 Programs and Grants Missouri First-Time Home Buyer: 2026 Programs and Grants Written by Peter Warden on May 11, 2026 — Updated by Ryan Tronier — Reviewed by Paul Centopani Missouri offers many programs that can lower your upfront costs and make buying more accessible, especially for first-time buyers.

Most assistance programs require education, income limits and buying a primary residence. Down payment and closing cost help can significantly reduce what you pay out of pocket, but some programs require repayment. Verify your home buying eligibility in Missouri.

Start here If you are a Missouri first-time home buyer, the good news is that home prices and home price inflation are lower than the national average. However, saving for a down payment and closing costs can still be difficult. Luckily, the Missouri government offers cash assistance to qualified home buyers that can help bridge the gap between their savings and down payment.

It also offers special mortgages and mortgage credit certificates that could save you money in the long run. So it’s worth exploring these programs before you jump in. In this article (Skip to...)

Buying in Missouri’s cities Missouri first-time home buyer programs First-time home buyers looking for assistance in Missouri can turn to the Missouri Housing Development Commission (MHDC). It runs several home buyer assistance programs that help renters achieve their dreams of homeownership. Verify your home buying eligibility in Missouri.

Start here MHDC First Place Loan Program Missouri Housing gives 30-year, fixed-rate FHA, VA, USDA, and HFA Advantage conventional loans to first-time homebuyers and qualified veterans. The interest rates on these loans are lower than the market rate. The First Place Loan Program lets you choose between two options.

Down payment assistance forgivable loan (details below); or Discount on your mortgage interest rate Whichever you choose, you could also be in line for a mortgage credit certificate (MCC). Depending on your circumstances, one of these tax credits could deliver worthwhile savings on your annual income tax bill. MHDC Next Step Loan Program The Next Step Program offers borrowers a 30-year, fixed-rate loan.

FHA, VA, USDA, and conventional loans are all allowed. Next Step also provides down payment and closing cost assistance of up to 4% of the loan amount. This no-interest second mortgage is forgiven after 10 years unless you refinance or sell the property.

MHDC mortgage requirements Inevitably, Missouri’s home buyer assistance programs come with plenty of rules. Among other things, you must: Buy a home within local home price caps Have an income within local household income limits Be a Missouri first-time home buyer* Meet minimum credit score requirements Use one of MHDC’s participating lenders *Generally, you must be a first-time home buyer to use the MHDC loan program.

However, there are two exceptions. If you're buying in a targeted area or are a veteran or service member, you might be able to use the MDHC program even as a repeat home buyer. Some of those rules are pretty vague.

So you should use the MHDC’s online prequalification process or contact one of its certified lenders to see whether you qualify. Missouri first-time home buyer grants Home buyer grants are a valuable resource for making homeownership more affordable. If you’re searching for down payment assistance in Missouri, we’ve highlighted several options, starting with MHDC’s Cash Assistance and Next Step Cash Assistance.

Although these programs begin as loans, they effectively function as grants in the long term. With no monthly payments and zero interest, both loans are fully forgiven after 10 years, providing a significant boost to homebuyers. Let us help find the right mortgage for you.

Start here MHDC Cash Assistance Loans (CAL) Via the CAL program, you can receive up to 4% of the home’s purchase price to help with your down payment and/or closing costs. You’ll have to repay some or all of that money if you move, sell, or refinance the home in less than 10 years. But, at the end of year 5, MHDC begins to forgive the loan at the rate of one-sixtieth of its value each month.

So, by the end of year 10, you’ll owe nothing. This can be an attractive deal for new home buyers. Even if you sell before 10 years, home price inflation might allow you to repay the loan and make a handsome profit.

Although home prices fall occasionally, they do so relatively rarely and usually briefly. MHDC Next Step Cash Assistance Loan (CAL) Next Step mortgage applicants may also qualify for a 4% Cash Assistance Loan to help with a down payment or closing costs. This second loan, like the first, is entirely forgiven after 10 years, as long as you stay in the home.

This can be a great option for Missouri first-time homebuyers who may struggle with the upfront costs of purchasing a home. It’s important to note that eligibility requirements and loan terms may vary depending on the state and program. Other Missouri homebuyer assistance programs Look into any local or county help available where you intend to buy.

This can include programs for first-time homebuyers, down payment assistance, or property tax relief. These resources can help make homeownership more affordable and accessible. Mortgage credit certificate (MCC) The Mortgage Credit Certificate (MCC) program in Missouri helps first-time homeowners and veterans save money on their taxes by giving them an income tax credit that lasts as long as they live in their home.

In Missouri, the MCC is worth 25% of your entire annual mortgage interest. To qualify, you must meet the program’s income requirements and purchase a home for no more than $510,939. First-time homeowners, eligible single parents, and displaced homemakers can get up to $10,000 to help with their down payment and closing costs from the city of Columbia.

This help comes in the form of a 10-year loan with no interest that is forgiven after 10 years. To qualify, you must have a minimum score of 600. You’ll also need to satisfy the program’s income and purchasing price restrictions.

Springfield offers a 10-year loan of up to $9,000 with no interest to help with a down payment or closing costs. You must be a first-time homebuyer or displaced person with a household income less than 80% of Springfield’s median income. The home purchase price should be no more than $150,000.

It also must be located in a Springfield target area. Missouri home buyer key stats The median home price in Missouri was $281,400 in March 2026. That jumped 6.

3% year-over-year, according to Redfin . The good news for home buyers is that average home prices in Missouri are significantly lower than in most other states. This could make Missouri’s real estate market especially appealing to first-time home buyers.

Verify your home buying eligibility in Missouri. Start here Average Home Listing Price in MO 1 $281,400 Minimum Down Payment in MO (3%) $8,442 20% Down Payment in MO $56,280 Average Credit Score in MO 2 712 Maximum MO Home Buyer Grant 3 Up to 4% of the purchase price as a forgivable second mortgage with no monthly payments. Statewide from MHDC Down payment amounts are based on the state's most recently available average home sale price.

“Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620. If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all .

Missouri first-time home buyer loans If you’re a first-time home buyer in Missouri with a 20% down payment, you can get a conventional loan with a lower interest rate and no private mortgage insurance (PMI). Of course, few first-time buyers have saved enough for 20% down. But the good news is that you don’t need that much.

Not by a long shot. Find the best first-time home buyer loan for you. Start here Borrowers can often get into a new home with as little as 3% or even 0% down using one of these low-down-payment mortgage programs: Conventional 97 : From Freddie Mac or Fannie Mae.

3% down payment and 620 minimum FICO score. You can usually stop paying mortgage insurance after a few years once you reach 20% home equity FHA loan : Backed by the Federal Housing Administration. 3.

5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan VA loan : Only for veterans and active-duty service members. Zero down payment is required.

Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. - [VA loan](https://themortgagereports.

com/13222/10-biggest-benefits-of-a-va-home-loan): Only for veterans and active-duty service members. Zero down payment is required. Minimum credit score varies by lender but often 620.

No ongoing mortgage insurance after closing. These loans offer many benefits for eligible borrowers, so apply if you’re eligible USDA loan : For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required.

Credit score requirements vary by lender but often 640. Low mortgage insurance rates Missouri Housing Development Commission loans : May include below-market rates, mortgage credit certificates, and down payment assistance. More information below Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence.

That means you can’t use these loans for a vacation home or investment property. In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on your mortgage loan, you could get into your new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender can help you find the right match based on your finances and home buying goals. Buying a home in Missouri’s major cities Housing is generally more expensive in Missouri’s three biggest cities than elsewhere in the state.

If you’re looking at pricier real estate, check whether your city or county has a down payment assistance program and compare it to the statewide one run by the MHDC. Verify your home buying eligibility in Missouri. Start here Kansas City first-time home buyers The median list price in Kansas City was $ 259,000 in March 2026.

That increased 0. 79% from the prior year , according to Realtor. com.

If you want to buy a home at that median price, your down payment options might fall between: $ 7,770 for 3% down payment $ 51,800 for 20% down payment Kansas City doesn’t appear to have an active down payment assistance program. We found references to DPA in policy documents, but nothing more. The city includes portions of four counties: Jackson, Clay, Cass, and Platte.

And you could see if those have their own programs. Just ask the county government where you are buying. Or you could call the city government at (816) 513-3600 to see if there’s a program we missed.

Otherwise, the statewide MHDC program is a good alternative. St. Louis first-time home buyers The median home price in St.

Louis was $ 235,000 in March 2026. That jumped 6. 8% year-over-year , according to Redfin .

If you want to buy a home at that price, your down payment options might fall between: $ 7,050 for 3% down payment $ 47,000 for 20% down payment Again, we could not locate a down payment assistance program run by the City of St. Louis. But you could call City Hall at (314) 622-4800 to check whether we missed something.

If that doesn’t work, fall back on the MHDC’s program. The city’s website says, “Since 1876, St. Louis has been an independent city, meaning it is not part of any county.

” Let us help find the right mortgage for your first home in St. Louis. Start here Springfield first-time home buyers The median list price in Springfield was $ 275,000 in March 2026.

That jumped 3. 71% year-over-year , according to Realtor. com.

If you want to buy a home at that median price, your down payment options might fall between: $ 8,250 for 3% down payment $ 55,000 for 20% down payment The City of Springfield has a down payment assistance program . Annual income caps seem quite low: $45,650 for a single buyer or up to $75,650 for a six-person household, per its September 2024 revision. (Income limits may have changed by the time you read this.)

If you’re eligible, you can borrow up to $9,000 as a silent second mortgage. That means a 0% interest rate and no monthly payments. But you have to repay the entire sum you borrowed when the home stops being your primary residence, no matter how long you live there.

By all means, check this out. But the MHDC’s statewide down payment assistance may suit you better. Where to find home buying help in Missouri The U.S. Department of Housing and Urban Development (HUD) has lists of state, regional, and local resources in addition to the ones we chose.

Verify your home buying eligibility in Missouri. Start here Statewide and regional Missouri first-time home buyer resources Missouri Housing Development Commission (MHDC) Community Action Agency of St.

Louis County Delta Area Economic Opportunity Corporation City of Columbia Homeownership Assistance Program City of Springfield Community Development DPA Missouri Affiliates of Habitat for Humanity Regional Planning Commissions U.S. Department of Agriculture Rural Housing Missouri first-time home buyer programs by city or town : What are today’s mortgage rates in Missouri? You can see today’s live mortgage rates here .

Before you begin, you can experiment with a home affordability calculator to see how your interest rate and down payment will affect your monthly mortgage payment. When you’re ready to start the home-buying process, get personalized rate quotes from at least three mortgage lenders. Don’t just look at advertised rates online.

Apply for preapproval and compare the interest rates and fees you’re offered. That’s the only way to know you’re getting the best deal on your new home loan. Time to make a move?

Let us find the right mortgage for you 1 Source: Redfin Missouri Housing Market Report 2 Source: Experian. com 2025 study of consumer credit data 3 Based on a review of the state's available DPA grants at the time this was written Authored By: Peter Warden The Mortgage Reports Editor Peter Warden has been writing for a decade about mortgages, personal finance, credit cards, and insurance.

His work has appeared across a wide range of media. He lives in a small town with his partner of 25 years. Updated By: Ryan Tronier The Mortgage Reports Editor Ryan Tronier is a financial writer and mortgage lending expert.

His work is published on NBC, ABC, USATODAY, Yahoo Finance, MSN Money, and more. Ryan is the former managing editor of the finance website Sapling and the former personal finance editor at Slickdeals. Reviewed By: Paul Centopani The Mortgage Reports Editor Paul Centopani is a writer and editor who started covering the lending and housing markets in 2018.

Previous to joining The Mortgage Reports, he was a reporter for National Mortgage News. Paul grew up in Connecticut, graduated from Binghamton University and now lives in Chicago after a decade in New York and the D. C.

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