Last updated October 23, 2026
Most St. Louis first-time buyers have more help available than they think: a state program through MHDC, local assistance in the City or County, and federal loans that need little or nothing down. Here’s who qualifies for each, which to check first, and what the money really is.
From MHDC’s 2026 limits and program materials, the Federal Home Loan Bank’s 2026 Home$tart terms, SLDC and Beyond Housing. Program terms change; confirm with the program or an approved lender. See the programs ↓
The primary down payment program is MHDC’s First Place and Next Step, available anywhere in the St. Louis area through certified lenders. Beyond that, some banks offer a Home$tart grant of up to $15,000, County partners such as Beyond Housing offer smaller local assistance, and FHA, VA and USDA loans need 3.5% down or less. The City’s HomeSTL fund is fully reserved for 2026.
Anyone who hasn’t owned their primary residence in the past three years, not just people who have never owned. MHDC and the City’s HomeSTL program both use that three-year rule, so if you owned years ago and have rented since, you likely qualify.
MHDC. It’s the main down payment program in the St. Louis area, it works anywhere in the region, and it sits on top of FHA, VA, USDA and conventional loans. Ask an MHDC-certified lender for it by name at pre-approval, then add any local program you qualify for.
4% of your first mortgage, as a second loan for down payment and closing costs. On a $300,000 first mortgage, that’s $12,000, or $9,000 after the maximum 1% lender origination fee; many lenders charge less.
Usually not. MHDC’s 4% is a second mortgage that’s forgiven gradually from year five to year ten if you keep the home and the original loan. Sell or refinance before then and some or all of it can come due.
Every program here works through a lender or a partner, not by applying to the program yourself. Terms are for 2026 and change with funding.
| Program | What you get | Who and where |
|---|---|---|
| MHDC First Place | 4% of your first mortgage, a second loan forgiven from year 5 to 10 | First-time buyers under the income and price limits, anywhere in the St. Louis area |
| MHDC Next Step | 4% of your first mortgage, same forgiveness | First-time or repeat buyers, higher limits |
| Home$tart | A grant of up to $15,000 | First-time buyers at or below 80% of area median income, through participating banks; limited, first come, first served |
| Beyond Housing | A 0% loan forgiven after five years in the home; amount set by funding | St. Louis, Jefferson and St. Charles counties, O’Fallon and Florissant |
| HomeSTL | Fully reserved for 2026 | City of St. Louis only |
| FHA, VA, USDA | 3.5% down (FHA) or nothing down (VA, USDA) | Eligible buyers and, for USDA, eligible areas |
MHDC is the primary down payment assistance program for St. Louis buyers, so it’s where I’d focus first. It offers two mortgage programs, each with an optional assistance loan of 4% of your first mortgage for down payment and closing costs. The Missouri Housing Development Commission runs them through certified lenders, not directly, so you ask for them by name when you get pre-approved.
For 2026 in the St. Louis area, regular First Place income limits start at $113,500 for a household of one or two, and the one-family price cap is $566,354. MHDC’s materials list a 640 minimum credit score, and it works on top of an FHA, VA, USDA or conventional loan (compare those loans). The full limits, fees, seller paperwork and how much of the 4% you actually keep are in the MHDC First Place and Next Step guide.
Look at Next Step. It doesn’t require you to be a first-time buyer. First Place also waives the first-time rule for qualified veterans and for homes in targeted census tracts, so check the exact address with your lender.
Some banks give first-time buyers a grant through the Federal Home Loan Bank’s Home$tart program. In 2026 it’s up to $15,000 per household for first-time buyers with income at or below 80% of the area median, buying a home they’ll live in. It’s a grant, not a loan.
You can’t apply for it yourself. Only banks that are members of the Federal Home Loan Bank can offer it, each bank gets a limited share, and the money goes first come, first served, so it often runs out early in the year. Ask your bank or lender whether they offer Home$tart and whether funds are open, at the same time you ask about MHDC.
The City’s main program is HomeSTL, run by the St. Louis Development Corporation, and its 2026 funds are gone. SLDC says all funds were fully reserved as of August 31, 2026, and it stopped taking new reservation requests. When it reopened in May 2026, it offered a 0% forgivable loan of up to $40,000 toward a home in the City, or up to $50,000 in a HUD-designated census tract, for first-time buyers under 80% of the area median income, with a homebuyer education course and an SLDC-approved lender required. Whether it opens again depends on new funding.
Mainly through nonprofit and municipal partners rather than one County program. Beyond Housing’s down payment assistance program serves St. Louis County, Jefferson County, St. Charles County, O’Fallon and Florissant, as a 0% loan forgiven after five years of living in the home. Some municipalities also run their own programs with federal HOME funds, so ask the city you’re buying in.
Three loans and one discount program:
How much each one needs down is on the down payment page.
Local and bank programs can. HomeSTL’s 2026 fund was fully reserved by August 31, Home$tart money at each bank is first come, first served, and County partner programs depend on each year’s federal funding. That’s one more reason to build your plan around MHDC and treat local help as a bonus. Ask about availability when you start your pre-approval, not after you’re under contract.
Through your lender, before you start touring seriously. In order:
These programs cover one piece of the purchase: the money. For the rest, from search to 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 pre-approval looks like, and what it doesn’t guarantee. Mortgage Pre-Approval in St. Louis → →Know your number? Take it to the showing. My walk-through tool flags repairs room by room and totals the 2026 expected costs, so you can see whether a house still fits your budget once you add what it needs. Save or email your results to compare houses.
MHDC eligibility
Under regular First Place, $113,500 for a household of one or two and $130,525 for three or more. In a targeted census tract or under Next Step, $136,200 and $158,900. The one-family price cap is $566,354, or $692,211 in a targeted tract or under Next Step. Full 2026 limit tables →
Yes. MHDC’s program materials list 640 for FHA, VA, USDA and conventional loans alike, while FHA alone allows 580 with 3.5% down. Lenders can require more.
Look at MHDC’s Next Step, which doesn’t require you to be a first-time buyer and has higher income limits. First Place also waives the first-time rule for qualified veterans and for homes in targeted census tracts. Next Step and the exceptions →
City and County help
Not right now. The City’s HomeSTL program, which offered up to $40,000, or $50,000 in a HUD-designated census tract, was fully reserved as of August 31, 2026. City buyers can still use MHDC, a bank’s Home$tart grant and the federal loan programs. HomeSTL details →
Through partners, not one County program. Beyond Housing’s down payment assistance serves St. Louis County, Jefferson County, St. Charles County, O’Fallon and Florissant as a 0% loan forgiven after five years in the home. Amounts follow each year’s funding. County assistance details →
Some do, through the Federal Home Loan Bank’s Home$tart program: a grant of up to $15,000 in 2026 for first-time buyers at or below 80% of the area median income. You can only get it through a participating bank, and each bank’s share is limited and first come, first served, so ask early in the year. How Home$tart works →
Ask your lender or the assistance program which course it accepts, since requirements differ. Beyond Housing, the St. Louis nonprofit that runs the County assistance above, offers a homebuyer education course, and HomeSTL required one when it was open.
Yes. The City’s Land Reutilization Authority sells properties it owns, usually vacant and in need of major work, often below market and with a requirement to rehab them. It’s a renovation project, not a turnkey first home, so read what buyers regret about cheap houses before you bid.
Loans and timing
VA and USDA need nothing down for eligible buyers and properties, FHA needs 3.5% with a 580 credit score, and conventional can go as low as 3% for first-time buyers. MHDC assistance can cover much of that. Federal loan options →
Local and bank programs can. HomeSTL’s 2026 fund was fully reserved by August 31, Home$tart money is first come, first served at each bank, and County partner programs depend on each year’s federal funding. Build your plan around MHDC and treat other help as a bonus. Timing and availability →
Sometimes. Each program sets its own rules on combining, and your lender has to approve the layering. Ask your lender to show every program you qualify for side by side, with the second-loan terms of each.
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.