Ultimate Guide to Saint Louis Homebuyer Assistance
- 1 day ago
- 9 min read
If you want to buy in Saint Louis, the main question is simple: which program fits the home’s location, your income, and your loan? In 2026, a median St. Louis home costs about $190,000, and closing costs often run $3,800 to $7,600. That means many buyers need help with both the down payment and cash due at closing.
Here’s the short version:
City buyers may find help through HomeSTL, which can offer up to $50,000 as a 0% forgivable second loan, though funding has been paused at times.
County and regional buyers may use Beyond Housing for $7,000 to $10,000, or CAASTLC for up to $5,000 in deferred help.
State buyers can look at MHDC First Place and Next Step, plus a Cash Assistance Loan worth up to 4% of the mortgage amount.
Tax help may come from the MCC, which can cut federal taxes by up to $2,000 per year.
Most programs look at first-time buyer status, income caps, credit score, home location, and homebuyer education.
Many deals work best when you layer local help with an MHDC loan, but your lender must allow it.
St. Louis reopens HomeSTL program to help first-time homeowners
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Quick Comparison
Program | Where It Works | Max Help | Main Rule to Watch | Payback |
HomeSTL | City of St. Louis | $50,000 | Income at or below 80% AMI | Forgiven after 10 to 15 years |
Beyond Housing | St. Louis County and some nearby areas | $7,000 to $10,000 | Area-based rules and inspection | Forgiven after 5 years |
CAASTLC | St. Louis County | $5,000 | County-only program | Repaid when you sell |
MHDC First Place | Statewide through approved lenders | Up to 4% CAL | First-time buyer or veteran | CAL forgiven over time |
MHDC Next Step | Statewide through approved lenders | Up to 4% CAL | More flexible buyer rules | CAL forgiven over time |
MCC | Statewide through MHDC | Up to $2,000/year tax credit | Can’t be used with First Place | No repayment |
My takeaway: the best path is usually to first check whether the home is in the City of St. Louis, St. Louis County, or a nearby county, then match that local program with an MHDC-approved mortgage and confirm the timing with your lender early.
City and county assistance programs
Where the home sits changes which programs you can use. If the property is inside the City of Saint Louis, you’ll look at city-backed help. Working with an experienced St. Louis real estate team can help you navigate these specific geographic requirements. If it’s outside city limits, county and regional options are the next stop.
City of Saint Louis programs
The main city program is HomeSTL, run by the St. Louis Development Corporation (SLDC). It offers up to $50,000 in 0% interest help through a forgivable loan. That breaks down into $40,000 in base aid, plus a $10,000 bonus for homes in HUD Qualified Census Tracts.
To qualify, your household income must be at or below 80% of Area Median Income (AMI), and you must be a first-time buyer. To have the full amount forgiven, you need to live in the home as your main residence for 10 to 15 years, based on the funding round.
As of April 2026, the first $3.8 million round funded through ARPA had been fully allocated. SLDC had paused the program while it looked for more funding, but it still keeps a pipeline ready for future releases.
If the home isn’t in city limits, county and regional programs become the next place to check.
For Housing Choice Voucher holders, SLHA's Bridge to Homeownership program can apply rental assistance toward a monthly mortgage payment.
Saint Louis County and regional programs
Beyond Housing offers down payment and closing cost help from $7,000 to $10,000, based on the municipality. Since 2004, it has provided more than $16 million in aid to over 2,250 homebuyers. The program serves St. Louis County, St. Charles County, Jefferson County, and the cities of Florissant and O'Fallon. It does not provide down payment assistance funds for the City of St. Louis.
Its income cap goes up to 100% AMI, and homes must pass a first-time homebuyer inspection. The property also can’t be in a flood plain. One useful detail: Beyond Housing drops the first-time buyer rule for purchases in St. Charles County, O'Fallon, and Florissant.
For buyers in St. Louis County, CAASTLC offers up to $5,000 in deferred down payment help. That money is repaid when the home is sold.
Local programs side-by-side comparison
Use the table below to compare amount, income cap, and repayment terms at a glance.
Program | Geography | Type | Max Amount | Income Limit | Forgiveness/Repayment | Education Required |
HomeSTL | City of St. Louis | Forgivable Loan | $50,000 | ≤ 80% AMI | 10–15 years | Yes |
Beyond Housing | St. Louis County | Forgivable Loan | $7,000 | Sliding scale (up to 100% AMI) | 5 years | Yes |
Beyond Housing | City of Florissant | Forgivable Loan | $8,000 | Sliding scale (up to 100% AMI) | 5 years | Yes |
Beyond Housing | St. Charles Co. / O'Fallon | Forgivable Loan | $10,000 | Sliding scale (up to 100% AMI) | 5 years | Yes |
Beyond Housing | Jefferson County | Forgivable Loan | $7,000 | Sliding scale (up to 100% AMI) | 5 years | Yes |
CAASTLC | St. Louis County | Deferred Loan | $5,000 | Varies | Repaid at sale | Yes |
SLHA Bridge | City of St. Louis | Voucher Credit | Varies | Min. $15,000 earned | N/A (monthly) | Yes |
Beyond Housing also drops the first-time buyer rule for purchases in St. Charles County, O'Fallon, and Florissant. It offers a free weekly virtual orientation and one-on-one counseling at least 10 days before closing.
If local funds don’t get you all the way there, statewide programs can be layered on next.
Missouri statewide programs for Saint Louis buyers
If city or county help still doesn't close the gap, MHDC can step in with lower mortgage rates, upfront funds, or a tax credit.
MHDC mortgage and down payment assistance options
MHDC has two main first-mortgage programs: First Place and Next Step. Both use 30-year fixed-rate loans and can work alongside city or county help with FHA, VA, USDA, or conventional financing.
First Place is for first-time buyers and qualified veterans. Its main draw is a below-market interest rate, which can trim your monthly payment.
Next Step gives buyers more room to work with. It's open to both first-time and repeat buyers, including people who earn too much for First Place. It's also the option to use if you want the MCC.
Both programs may include a Cash Assistance Loan (CAL). This is a second mortgage worth up to 4% of the loan amount for down payment and closing costs. On a $250,000 home purchase, that means as much as $10,000 in upfront help. The CAL is forgiven after 10 years. With First Place, forgiveness begins in year five and builds monthly. If you sell or refinance before then, you'll usually need to repay the part that hasn't been forgiven yet.
For most MHDC programs, you'll need a minimum credit score of 640. That's higher than some FHA loans, which may allow scores down to 580. MHDC loans also have to go through an MHDC-certified local lender.
Mortgage Credit Certificate (MCC)
The Mortgage Credit Certificate (MCC) can cut your federal tax bill by 25% to 45% of your annual mortgage interest, with a cap of $2,000 per year. Over 10 years, that could add up to $20,000 in tax savings. The MCC stays in place for the life of the loan, and if you can't use the full credit in one year, the unused part can carry forward for up to three years.
The MCC is open to first-time buyers who meet MHDC rules. But there's one big catch: you can't combine the MCC with the First Place program. If you want the tax credit, you'll need to use Next Step instead.
Missouri programs side-by-side comparison
Use the table below to compare the main differences at a glance.
Program | First-Time Buyer Required | Assistance Format | Main Benefit | Income/Price Limits | Pairs with Local Help |
MHDC First Place | Yes (or Veteran) | 30-year fixed + 4% forgivable CAL | Below-market rate + upfront DPA | Lower limits; varies by household size | Yes (e.g., HomeSTL, Beyond Housing) |
MHDC Next Step | No | 30-year fixed + 4% forgivable CAL | Higher income flexibility + DPA | Higher limits than First Place | Yes |
Mortgage Credit Certificate (MCC) | Yes | Federal tax credit | Up to $2,000/year tax reduction | Must meet MHDC guidelines | Yes (with Next Step only) |
Income and purchase price limits change each year, so check the current numbers with an MHDC-certified lender.
Loan options that work with assistance programs
Once you know which help you can get, the next step is pairing it with a mortgage that allows layering. That match matters more than it may seem. Your loan type decides which assistance programs you can use, and the wrong combo can leave you scrambling for cash at closing.
FHA, USDA, and conventional low-down-payment loans
FHA loans are a common fit for Saint Louis assistance programs. They need as little as 3.5% down. The downside is cost: FHA loans come with an upfront mortgage insurance premium and a monthly mortgage insurance charge.
Conventional loans such as Fannie Mae HomeReady and Freddie Mac Home Possible need only 3% down. They can be a good fit for low-to-moderate income buyers who want a smaller down payment without FHA mortgage insurance rules.
USDA loans offer 0% down in eligible suburban or rural areas near St. Louis. VA loans also offer 0% down for eligible veterans and active-duty service members.
How program layering works in practice
Layering means using a first mortgage along with one or more forgivable second mortgages. In Saint Louis, a common setup is an MHDC first mortgage paired with MHDC Cash Assistance and a local forgivable second mortgage like HomeSTL, as long as the lender signs off on the second mortgages.
That last part is a big one. Not every lender is set up to manage more than one second mortgage. Check layering approval before you lock your loan. Beyond Housing also says the DPA application must be submitted at least 30 days before your scheduled closing date.
Loan and assistance pairings side-by-side comparison
Use the table below to compare how each loan type lines up with Saint Louis assistance programs.
Loan Type | Min. Down Payment | Typical Buyer Profile | Common St. Louis Pairing | Key Limitation |
FHA | 3.5% | Lower credit scores; limited savings | MHDC First Place + HomeSTL | High mortgage insurance costs |
HomeReady / Home Possible | 3% | Low-to-moderate income buyers | MHDC + HomeSTL or Beyond Housing | Income must be ≤80% AMI |
USDA | 0% | Buyers in eligible suburban or rural areas | MHDC assistance for closing costs | Property must be in a USDA-eligible area |
VA | 0% | Veterans and active-duty military | MHDC First Place | Must meet military eligibility |
Next, check the income, credit, property, and timing rules before you apply.
Eligibility, application steps, and final checklist
Eligibility rules to check early
After you pick a loan and assistance combo, check the rules before you commit to a lender. This step can save you a headache later.
Start with four items: first-time buyer status, income limits, credit score, and where the home is located.
First-time buyer status usually means you haven’t owned a home in the last three years. Income limits matter too, and they change by program. HomeSTL uses an income cap of 80% AMI. Beyond Housing uses a sliding scale up to 100% AMI. MHDC’s Next Step allows higher income limits. For credit, 640 is the usual minimum for MHDC programs.
Location can make or break your application. HomeSTL only works for homes inside the City of St. Louis. Beyond Housing serves St. Louis County, Jefferson County, St. Charles County, O'Fallon, and Florissant. Homes in flood plains are often not allowed. If the property was built before 1978, you may need a lead-based paint inspection before funds can be released. And across all programs, the home must be your primary residence for the full required period.
Application timeline and required documents
Once you know you meet the main rules, don’t drag your feet. Move on education, pre-approval, and paperwork as soon as you can.
You’ll need a HUD-approved homebuyer education course for HomeSTL, Beyond Housing, and MHDC. Beyond Housing also asks for a one-on-one counseling session at least 10 days before closing.
Next, get pre-approved through a participating lender before you start touring homes. Then pull your documents together early. Most buyers will need:
30 days of pay stubs
Two years of W-2s and tax returns
Two months of bank statements
A photo ID
A signed purchase contract once you’re under contract
Once you’re under contract, your lender can reserve funds. That’s why timing matters. Keep things moving, and submit the DPA application at least 30 days before closing.
Key takeaways for Saint Louis buyers
FAQs
Can I combine more than one assistance program?
Yes. In many cases, you can combine multiple homebuyer help programs to cut your upfront costs.
This is often called stacking programs. For example, you might pair MHDC’s First Place or Next Step loans with local city or county down payment help.
The catch is that rules and eligibility can vary from one program to another. So before you move ahead, check with an MHDC-participating lender or a HUD-approved housing counselor to see which options can be used together.
What if I’m not a first-time homebuyer?
You may still be able to get help in the Saint Louis area.
A lot of programs, including HomeSTL, are only for first-time buyers. But the MHDC Next Step Loan is different. It’s built for repeat buyers and for buyers whose income is above first-time buyer limits.
Some local areas may also drop the first-time homebuyer rule for certain programs. That can include St. Charles County and the City of Florissant.
How early should I apply for assistance?
Start as early as possible. Many programs require HUD-approved homebuyer education and counseling before you apply, so that often needs to happen first.
Some providers also want your closing date set at least 30 days after you submit your application. If you're buying in Saint Louis, Lizzy Dooley Real Estate can help you work through those deadlines.
