Down Payment Help Is Only for People Who Are Broke
Myth #4 of 30
When some people hear "down payment assistance," they picture someone in a much harder spot than they are. So they never even look into it. Research shows only about 1 in 4 people who want to buy a home know these programs exist and have actually checked them out.
Down payment assistance is money or a loan from a program that helps you cover your down payment, the cash you pay up front when you buy. And here's the surprise: across the country there are over 2,700 of these programs, and most of them are open to households making more than $100,000 a year. They're built for regular working people.
Who qualifies for down payment help in Missouri?
The biggest statewide option comes from the Missouri Housing Development Commission, or MHDC. It's a state agency that helps Missourians buy homes. For the St. Louis area, which includes St. Charles, Warren, Lincoln and St. Louis counties, the 2026 income limits are:
- $113,500 a year for a household of 1 or 2 people
- $130,525 a year for a household of 3 or more
The typical household in St. Charles County makes about $104,700. That means a normal household here is under the limit.
How much help can you get?
MHDC can give you help equal to 4% of your mortgage, which is your home loan. On a $300,000 loan, that's $12,000.
This help comes as a second loan. That means a smaller, separate loan on top of your main mortgage. The good news is this one gets forgiven over time, which means you may never have to pay it back. It starts shrinking after 5 years and is fully gone after 10 years, as long as you still live in the home and haven't sold it.
A few rules apply. The home has to cost less than about $566,000 in our area, and you need a credit score of at least 640. A credit score is a number that shows how well you've paid back money you've borrowed before.
Some cities have their own help too. O'Fallon, for example, has offered a $10,000 forgivable loan for buyers under its income limits. Program rules change, so always check what's current.
Is down payment help free money?
Usually not, and you should know that going in. Most programs are second loans. Some are forgiven over time like MHDC's. Some have to be paid back when you sell the house or refinance, which means replacing your loan with a new one. A small number are true grants, which you never pay back. Ask which kind you're getting.
Do you have to be a first-time buyer?
For MHDC, "first-time buyer" usually means you haven't owned a home in the last 3 years. So if you owned a home a long time ago, you might still count. Veterans, and buyers in certain areas the state is trying to help, may not have to be first-time buyers at all.
Where do you start?
Not every lender works with every program. When you talk to a lender, ask directly: "Do you offer MHDC loans?" If they don't, find one who does.
Make it personal: get your free workbook
Reading about it is one thing. Knowing your own numbers is another. We made a free workbook for this topic, Your Down Payment Help Workbook, that walks you through each idea in this post using your own situation. Sign up once and you'll get every workbook in this series as it comes out, right to your inbox.
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