VA Loans and Mortgages
VA Home Loan Guide
VA Home Loans are a great benefit to qualified eligible veterans. Use this VA Home Loan guide to navigate the mortgage process to your dream home. One of the...
The Missouri Housing Development Commission (MHDC) provides financing for home loans intended for qualified, first-time buyers.
MHDC was created in 1969 by the State of Missouri General Assembly and offers home loan financing through a statewide network of participating lenders. These loans are funded through the sale of mortgage-backed securities and tax-exempt bonds.
MDHC’s state-run veteran-friendly home loan programs include:
- The Missouri First Place Loan Program
- Mortgage Credit Certificate (MCC)
- Next Step Program
For any of the programs listed below, you can learn more or pre-qualify at the MDHC official site.
The Missouri First Place Loan Program
The MHDC First Place Loan program offers home loan funds “at below-market interest rates” that participating lenders can offer as loans to first-time home buyers and qualified veterans for primary residence purchases within Missouri. There are two types of help provided in this program:
Cash Assistance Payment: Provides up to 4% of the loan amount to first-time home buyers in need of help with a down payment and/or closing costs. This program offers help for new construction loans as well as existing construction homes.
Non-Cash Assistance: These are offered as low-rate loans “at a somewhat lower interest rate” according to MHDC (“…usually 0.25% to 0.50% below” the Cash Assistance Payment rate. Non-Cash Assistance is meant for qualifying buyers who can afford their own down payment and closing costs. For new construction and existing construction homes that will be owner-occupied.
These loans may be offered as FHA, VA, USDA, or conventional mortgages. Income limits and purchase price restrictions may apply depending on the home’s location.
Who Is Eligible To Apply
First-time home buyers qualify, as do anyone who has not owned a home in the last three years. Veterans do not have to meet the first-time home buyer requirement if they served on active duty and applied for the loan within 25 years of leaving active military service. No applicant is required to meet the first-time home buyer requirement if they purchase a home in a targeted area.
Next Step Program
The Next Step Program is meant for “non-first-time home buyers,” including qualifying veterans who lack “sufficient equity or funds” for the down payment on a new primary residence.
According to the official site, this program addresses this need and allows first-time home buyers who don’t meet income limits for the First Place program to apply for an affordable home loan.
Next Step is for purchases within the state of Missouri for qualifying veterans (those who served on active duty and apply within the state’s specified time frame after leaving active service) and non-first-time buyers. They are offered as 30-year mortgages and may be VA, FHA, conventional, or other types.
This loan may qualify for the Mortgage Credit Certificate Program (see below). Next Step loans are serviced by a network of participating lenders, and different lenders may offer other options. It pays to shop around for a participating lender to compare terms. Borrowers who need down payment assistance should discuss this with the lender as early as possible in the conversation.
Mortgage Credit Certificate (MCC)
The MCC program allows qualifying first-time buyers and veterans a break on mortgage-related federal income tax owed on property they own and occupy. MCC provides a 25% tax credit for mortgage interest.
This is not automatic and must be signed up for via a participating lender or via the prequalify page on their website. Purchase price limits and other restrictions apply. Income restrictions may be based on the total household income for all qualifying family or household members.
The total income may be calculated from all sources, including overtime, alimony, child support, investment earnings, etc.
Who qualifies for an MCC?
- Applicants who meet income and home purchase requirements
- Those who have not owned a primary residence in the last three years
- Those who will use the home as their primary residence
- Those who are not refinancing
MCC cannot be used in conjunction with any refi loan.
Which mortgages qualify for an MCC?
- VA purchase loans
- FHA purchase loans
- USDA purchase loans
- Conventional purchase loans
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Jon Rehagan is a 2-time Emmy Award-winning journalist who covers financial topics and military news for the veteran community. With 16 years in broadcast media (including roles in radio and television) Jon has spent his career writing, shooting, editing, and producing everything from long-form investigative specials to daily news broadcasts and digital content. His work has been recognized by the Kansas Association of Broadcasters, and he brings that same commitment to accurate, accessible reporting to helping service members, veterans, and military families navigate complex benefits and financial decisions.
