How to Decide Which Down Payment Program Fits You Best

For many homebuyers, discovering that down payment assistance programs exist is a game-changer. It takes the dream of homeownership from a “maybe someday” into a “this might actually happen.”

But right after the excitement comes the big question:

“So which program is the best for me?”

It’s a fair question — and an important one. The right program can save you thousands of dollars, while the wrong fit can leave money on the table or even delay your home purchase. This post will walk you through how to think about your options, what factors really matter, and how we at Midwest Horizon guide our clients through this decision every single day.

Step 1: Understand the Big Picture

First things first: down payment assistance isn’t just for first-time buyers. That’s one of the biggest myths we tackle in this series. Most programs are designed for people who have not owned a home in the last three years, which means you might still qualify even if you owned a home in the past.

The two most common programs we work with in the St. Louis area are:

• Beyond Housing – a local nonprofit program that offers up to $10,000 in down payment assistance to qualifying buyers.

• MHDC (Missouri Housing Development Commission) – a state program that offers percentage-based assistance, often between 3%–4% of the purchase price, which can sometimes be more than Beyond Housing’s flat amount.

Each program is powerful. Each program can help bridge the gap between what you have saved and what you need to get into a home. But they work differently, and that’s where having a guide matters.

Step 2: Know Your Financial Picture

The first factor in choosing a program is knowing your own numbers. Here’s what you’ll want to look at:

• Household Income: Both programs have income limits based on how many people live in your household. Go over by even a dollar and you may be disqualified.

• Credit Score: Many programs require a minimum credit score (often 640). If you’re not sure where you stand, it’s worth pulling your credit before you apply.

• Debt-to-Income Ratio: Programs may cap how much of your monthly income can go toward debt (including your future mortgage).

This might sound overwhelming, but we sit down with clients every day to walk through these numbers. Sometimes we find that a buyer qualifies for both programs, which opens the door to compare them side by side.

Step 3: Compare the Programs Side by Side

When you’re eligible for more than one program, we recommend looking at them together to see which gives you the most benefit.

Beyond Housing

• Type: Flat dollar amount (up to $10,000)

• Good For: Buyers purchasing in areas where home prices may be lower, so a flat amount covers a large portion of the down payment

• Bonus: Can sometimes be paired with other incentives (like grants or closing cost assistance)

MHDC

• Type: Percentage of the purchase price (usually 3–4%)

• Good For: Buyers purchasing higher-priced homes, where a percentage can add up to more than $10,000

• Bonus: Often integrated directly with your mortgage, making the process smooth

It’s not always about which one is “better” overall — it’s about which one is better for you. For example, we recently worked with a buyer purchasing a $150,000 home. Beyond Housing was the clear winner because $10,000 was a huge percentage of their purchase price. On the other hand, another client buying a $300,000 home saw more benefit from MHDC’s percentage-based assistance.

Step 4: Think About Timing

Programs can have different processing times, which matters if you’re trying to close quickly. Some programs may add extra days to your closing timeline, while others work on the same timeline as a standard loan.

This is another place where our team’s experience matters. We know how to set the right expectations with your lender and the seller so you don’t risk losing the home you want because of timing issues.

Step 5: Factor in Your Long-Term Goals

Choosing a program isn’t just about the numbers — it’s about your bigger picture.

• Are you trying to keep as much cash in the bank as possible after closing?

• Are you more focused on getting the lowest monthly payment?

• Do you plan to move again in a few years, or stay in the home long term?

Some programs have requirements for how long you must live in the home before selling, or you may have to repay a portion if you sell too soon. We always make sure clients understand these details so they can make the choice that fits their goals.

Why Professional Guidance Matters

It’s tempting to just Google “down payment programs near me” and hope for the best, but this is one area where professional guidance can make a massive difference. We’ve seen buyers:

• Get denied for assistance because they applied for the wrong program

• Miss out on thousands of dollars because they didn’t know about a better option

• Delay closing because they didn’t have the right paperwork ready in time

At Midwest Horizon, we have guided countless buyers through this process. We know the paperwork, we know the eligibility requirements, and we know how to match you with the program that fits your needs — not just any program.

Don’t Leave Money on the Table

This is the bottom line: down payment assistance exists to help you. It can be the difference between waiting another year to buy and getting into your home now. But if you pick the wrong program or don’t take action, you could leave thousands of dollars just sitting there, unclaimed.

You don’t have to figure this out alone. Our team has walked buyers through every step of the process — from figuring out which program they qualify for, to completing the application, to celebrating when they get the keys to their new home.

Ready to See Which Program Fits You Best?

If you’re ready to take the next step toward homeownership, let’s talk. We’ll sit down with you, review your financial picture, and compare your options side by side. Whether you qualify for Beyond Housing, MHDC, or another program entirely, we’ll make sure you don’t leave free money on the table.

Buying a home is a big step — but with the right guidance and the right program, it’s absolutely within your reach.