Home › Blog › First Time Home Buyer Programs St. Louis
Buying your first home in St. Louis is more affordable than you might think. Between state-level grants, city and county assistance programs, and federal loan options, many first time home buyers in St. Louis can move in with little to no money out of pocket.
The problem? Most buyers never hear about these programs until it is too late. Real estate agents and even some lenders fail to mention them. This guide breaks down every major first time home buyer program available in the St. Louis, Missouri area for 2026 — including how much money you can get, who qualifies, and exactly how to apply.
St. Louis first time buyers can access up to $10,000+ in free down payment assistance through state and local programs. By stacking an FHA loan with MHDC or city grants, many buyers close with less than $1,000 out of pocket.
If you are a first time home buyer in St. Louis, you have access to assistance at three levels: federal, state, and local. Each level offers different benefits, and the best part is that many of these programs can be layered together.
Here is a quick snapshot of what is available:
The definition of "first time buyer" is more flexible than you might expect. In most programs, you qualify as a first time buyer if you have not owned a home in the past three years. Veterans and buyers purchasing in targeted census tracts are often exempt from the first-time requirement entirely.
The Missouri Housing Development Commission (MHDC) runs the two most impactful first time home buyer programs in the state. If you are buying in St. Louis and meet income guidelines, these should be your starting point.
The First Place program is designed specifically for first time home buyers in Missouri. Here is what it includes:
For a $200,000 home, 4% assistance equals $8,000 toward your down payment and closing costs. Combined with a 3.5% FHA down payment requirement of $7,000, this assistance essentially covers your entire down payment.
The Next Step program is similar to First Place but is available to both first time and repeat buyers. The key differences:
MHDC programs operate on a first-come, first-served basis and funding can run out. In 2025, several allocation rounds were exhausted within weeks. Work with an MHDC-approved lender early to reserve your spot when new funding becomes available.
The City of St. Louis operates several homebuyer assistance programs, many of which target specific neighborhoods undergoing revitalization. These programs are separate from MHDC and can sometimes be stacked on top of state assistance for even greater savings.
This program provides direct financial assistance to income-eligible buyers purchasing within the City of St. Louis limits. Benefits typically include:
St. Louis has designated several neighborhoods as priority revitalization areas. Buyers purchasing in these areas may qualify for additional incentives:
These neighborhood-level programs can dramatically reduce the true cost of homeownership. A 10-year property tax abatement on a $180,000 home could save you $20,000 or more over the abatement period.
Beyond Housing is a nonprofit serving the St. Louis region that offers homebuyer education, counseling, and in some cases direct financial assistance. They work extensively in north St. Louis County communities and can connect buyers with programs they might not find on their own.
Answer a few quick questions and a licensed St. Louis mortgage specialist will identify every grant and assistance program available to you — completely free.
Check My Eligibility Now →St. Louis County (separate from the City of St. Louis) administers its own homebuyer assistance through the federal HOME Investment Partnership Program. This is one of the most overlooked resources for first time buyers in the St. Louis metro area.
Many St. Louis County communities participate, including Florissant, Ferguson, Hazelwood, Jennings, Normandy, University City, and others. Contact the St. Louis County Department of Human Services or your lender to confirm eligibility for your target area.
The key advantage of county HOME funds is that they can often be combined with MHDC assistance. A buyer using MHDC First Place plus County HOME funds could receive $15,000 or more in total assistance — often enough to cover the entire down payment and most closing costs on a median-priced St. Louis County home.
The most popular path for first time buyers in St. Louis is combining an FHA loan with one or more down payment assistance programs. Here is why this combination is so powerful:
Here is a real-world example of how a St. Louis first time buyer might stack programs:
| Item | Amount | Source |
|---|---|---|
| Home Purchase Price | $200,000 | — |
| FHA Down Payment (3.5%) | $7,000 | Covered by DPA below |
| MHDC First Place Assistance (4%) | $8,000 | Forgivable second mortgage |
| Estimated Closing Costs | $5,000–$7,000 | Seller concessions + remaining DPA |
| Buyer's Out-of-Pocket Cost | $0–$1,000 | Earnest money (often refunded at closing) |
This is not hypothetical. Thousands of St. Louis first time buyers close this way every year. The key is working with a lender who is experienced with DPA programs and can structure the deal correctly.
FHA loans allow the seller to contribute up to 6% of the purchase price toward your closing costs. In the current St. Louis market, many sellers are willing to offer 2–3% in concessions, especially for homes that have been on the market for 30+ days. Always ask.
Here is a side-by-side comparison of the major first time home buyer programs available in St. Louis:
| Program | Assistance Amount | Min. Credit Score | Income Limit | Repayment |
|---|---|---|---|---|
| MHDC First Place Best Overall | Up to 4% of loan | 640 | ~$90K–$110K | Forgiven after 10 years |
| MHDC Next Step | Up to $6K–$10K | 640 | ~$90K–$110K | Forgiven after 10 years |
| City of St. Louis DPA | $5K–$10K | Varies (often 620) | 80% AMI (~$58K–$72K) | Forgiven after 5–10 yrs |
| STL County HOME Funds | $5K–$10K | Varies | 80% AMI | Forgiven after 5–10 yrs |
| FHA Loan | Low 3.5% down | 580 | No limit | Standard mortgage |
| HomeReady / Home Possible | 3% down conventional | 620 | 80% AMI (area-based) | Standard mortgage |
Income limits are the most common reason buyers assume they do not qualify for first time home buyer programs in St. Louis. But the limits are more generous than most people realize.
MHDC sets income limits by county and household size. For the St. Louis metro area, the 2026 limits are approximately:
These limits cover a large portion of St. Louis homebuyers. A household with two earners making $45,000 each would fall well within the limit.
MHDC also caps the purchase price of eligible homes. In the St. Louis metro area, the 2026 limit is approximately $350,000–$380,000 depending on the specific county. Given that the median home price in St. Louis is around $230,000–$260,000, most purchases will fall well below the cap.
Applying for first time home buyer programs in St. Louis is not as complicated as it sounds. Here is the process from start to finish:
Pull your free credit report at AnnualCreditReport.com. You need at least a 640 for MHDC programs or 580 for a standalone FHA loan. If your score is below these thresholds, focus on credit repair for 3–6 months before applying.
Most assistance programs require a HUD-approved homebuyer education course. In St. Louis, you can complete this through Beyond Housing, the Urban League, or online through eHome America. Courses typically take 6–8 hours and cost $50–$100.
This is the most important step. Not all lenders are approved to originate MHDC loans. You need to work with one who is. Your lender will evaluate your eligibility for MHDC programs, county or city DPA, and the best loan type for your situation — all in one pre-approval process.
With your pre-approval letter in hand (which will specify the maximum you can borrow and the assistance programs you qualify for), start shopping. Your real estate agent should be familiar with program requirements like purchase price limits and property condition standards.
Once you have an accepted offer, your lender submits the full mortgage application along with the DPA program paperwork. Your lender handles the coordination between the primary mortgage, MHDC funding, and any additional assistance.
Closing typically takes 30–45 days from accepted offer. At closing, the DPA funds are applied directly to your down payment and closing costs. In many cases, you will only need to bring a small amount (or nothing) to the closing table.
From your first conversation with a lender to closing day, the typical timeline for a St. Louis first time buyer using assistance programs is 60–90 days. Start the process well before you plan to move so you are not rushed.
After helping hundreds of St. Louis buyers navigate these programs, here are the strategies that make the biggest difference:
Get matched with an MHDC-approved lender who specializes in first time buyer programs. Free, no-obligation consultation.
Get My Free Quote →What first time home buyer programs are available in St. Louis?
St. Louis first time buyers can access MHDC First Place and Next Step loans with up to $10,000 in down payment assistance, City of St. Louis neighborhood grants, St. Louis County HOME funds, FHA loans with DPA overlays, and federal programs like HomeReady and Home Possible. Many of these can be combined for maximum savings.
What are the income limits for first time home buyer programs in St. Louis?
Income limits vary by program. MHDC programs typically cap household income at $90,000–$110,000 depending on family size and county. City of St. Louis programs generally target households earning at or below 80% of the area median income, which is roughly $58,000–$72,000 for a family of four. Check each program individually as limits update annually.
Can I buy a home in St. Louis with no money down?
Effectively yes. By combining an FHA loan (3.5% down) with a down payment assistance grant or forgivable second mortgage, many St. Louis buyers close with $0–$1,000 out of pocket. VA loans offer true zero-down financing for eligible veterans. USDA loans also offer zero down for homes in eligible rural areas around St. Louis.
Do I need to be a first time buyer to qualify for St. Louis assistance programs?
Most programs define "first time buyer" as someone who has not owned a home in the past three years. So even if you owned a home previously, you may still qualify. Some programs, like MHDC Next Step, are available to repeat buyers as well. Veterans are often exempt from first-time buyer requirements.
How do I apply for first time home buyer programs in St. Louis?
Start by getting pre-approved with an MHDC-approved lender who can evaluate your eligibility for state and local programs simultaneously. You will also need to complete a HUD-approved homebuyer education course. From there, your lender handles the application for MHDC funds and DPA programs as part of your mortgage process.
What credit score do I need for first time buyer programs in St. Louis?
MHDC programs generally require a minimum credit score of 640. FHA loans accept scores as low as 580 with 3.5% down. Some DPA programs have their own credit minimums, typically 620–660. If your score is below 640, focus on an FHA loan first and layer on any DPA programs that accept lower scores.
For more on mortgage options in St. Louis, see our guides to FHA loan requirements in Missouri, down payment assistance programs in St. Louis, and top mortgage lenders in St. Louis.