Program guide
What to know before you click through
This is still the free fact layer. Open the official source when a detail affects eligibility, repayment, lender choice, or whether this path should stay on your shortlist.
Who qualifies?
Missouri buyers using a certified MHDC lender for an eligible Missouri property, Missouri first-time homebuyers outside First Place income limits, Missouri repeat buyers outside First Place income limits, Qualified Veterans using the statewide MHDC Next Step path
What support do you get?
Statewide MHDC purchase mortgage with an optional 100% forgivable second loan equal to 4% of the total mortgage amount for down payment and closing costs.
Do you repay it?
When the borrower chooses cash assistance, MHDC says the second loan equals 4% of the total mortgage amount and is fully forgiven after 10 years if the borrower stays in the home and keeps the original loan. After year five, forgiveness begins reducing by 1/60 each month until year 10. Borrowers may also choose a non-cash-assistance Next Step loan with lower rates instead of the second loan.
How do you apply?
Work with an MHDC Certified Lender, choose whether to use Next Step with cash assistance or without it, and close an eligible 30-year purchase mortgage for a Missouri property through the lender's MHDC reservation process.
Application timing
Apply through an MHDC Certified Lender; MHDC says Next Step funds are allocated on a first-come, first-served basis.
Official source evidence
MHDC's current Next Step page says the program serves first-time and repeat homebuyers outside First Place income limits and offers optional cash assistance through certified lenders statewide. The current brochure says the cash-assistance option is a 100% forgivable second loan equal to 4% of the total mortgage amount and is forgiven over 10 years, but the same brochure's eligibility bullets still describe eligible borrowers as first-time homebuyers or qualified Veterans, so the current public borrower materials are not perfectly aligned on the repeat-buyer rule.
View official source
Last verified
2026-04-19
Effective date not captured.
Paid preview
What paid access adds for MHDC Next Step
See the shape of the comparison output, risk checks, lender questions, and next-step checklist before you decide whether this program is worth carrying into the paid layer.
Example paid output for this program. The free page stays visible either way.
Comparison preview
MHDC Next Step
Amount: Statewide MHDC purchase mortgage with an optional 100% forgivable second loan equal to 4% of the total mortgage amount for down payment and closing costs.
Repayment: When the borrower chooses cash assistance, MHDC says the second loan equals 4% of the total mortgage amount and is fully forgiven after 10 years if the borrower stays in the home and keeps the original loan. After year five, forgiveness begins reducing by 1/60 each month until year 10. Borrowers may also choose a non-cash-assistance Next Step loan with lower rates instead of the second loan.
First-time buyer: Varies
Timing: Apply through an MHDC Certified Lender; MHDC says Next Step funds are allocated on a first-come, first-served basis.
Risk checks preview
What gets flagged before you call a lender
- MHDC Next Step must be paired with a specific first mortgage.
Lender questions preview
Questions tied to this exact path
- Which first-mortgage product must be paired with MHDC Next Step, and what breaks eligibility?
- What occupancy period must be completed before MHDC Next Step is forgiven after 120 months?
Action checklist preview
What you would do next
- Review the official Next Step program page for MHDC Next Step
- Carry the lender question kit for MHDC Next Step
