Bootcamp For Buyers

Missouri Next Step Program

The Missouri Next Step Program, administered by the Missouri Housing Development Commission (MHDC), is designed to assist repeat homebuyers and moderate-income households in achieving affordable homeownership. By providing competitive mortgage options and financial assistance, the program reduces barriers to homeownership and promotes long-term housing stability across Missouri.

Benefits

  • Offers 30-year fixed-rate mortgages with competitive interest rates, ensuring stable and predictable monthly payments.
  • Provides down payment and closing cost assistance of up to 4% of the loan amount, helping to reduce upfront expenses.
  • Supports repeat homebuyers and individuals who do not qualify as first-time buyers but meet income requirements.
  • Includes reduced private mortgage insurance (PMI) options, lowering monthly housing costs for eligible borrowers.
  • Can be combined with other MHDC programs for comprehensive financial support and flexibility.

Eligibility Requirements

  • Applicants must meet income limits, which vary based on household size and the location of the property within Missouri.
  • The property must be located in Missouri and used as the buyer’s primary residence.
  • A minimum credit score of 640 is typically required, with lender-specific underwriting criteria also applicable.
  • Debt-to-income ratios must align with program guidelines to ensure financial stability and affordability.
  • Participants must complete a Missouri Housing Development Commission-approved homebuyer education course to prepare for the responsibilities of owning a home.

Additional Information

The Missouri Next Step Program is a valuable resource for repeat homebuyers and moderate-income households seeking affordable homeownership solutions. By offering financial assistance and competitive mortgage options, the program empowers eligible buyers to secure stable housing and build long-term equity. Administered by the Missouri Housing Development Commission, this initiative supports sustainable homeownership and strengthens communities throughout the state.

Frequently Asked Questions About Our Program

What is the Missouri Next Step Program?

The Missouri Next Step Program provides affordable mortgage financing and down payment assistance for homebuyers who may not qualify for the First Place Loan Program, including repeat buyers.

Who qualifies for the Next Step Program?

The program is available to first-time and repeat homebuyers who meet income, credit, and property eligibility requirements. It is designed for buyers who may exceed the income limits of other programs.

What types of mortgages are available through the Next Step Program?

The program offers 30-year fixed-rate mortgages, ensuring stable and predictable monthly payments for the life of the loan.

Does the Next Step Program provide down payment assistance?

Yes, the program offers up to 4% of the loan amount in down payment and closing cost assistance to reduce upfront expenses.

What is the minimum credit score required for the Next Step Program?

A minimum credit score of 640 is typically required, though higher scores may improve eligibility and loan terms.

Are there income limits for the Next Step Program?

Yes, income limits apply but are higher than those for the First Place Loan Program, making it accessible to a broader range of buyers.

What is the maximum purchase price allowed under the Next Step Program?

The maximum purchase price is generally $349,500, but this may vary based on the property's location and program guidelines.

Don't miss out!

Check out our program and get started today.

Get Started Now

What types of properties are eligible for the Next Step Program?

Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they are permanently affixed to a foundation and meet program requirements.

Is homebuyer education required for the Next Step Program?

Yes, completing a homebuyer education course is mandatory to help buyers prepare for the financial responsibilities of homeownership.

Can the Next Step Program be used for newly constructed homes?

Yes, newly constructed homes are eligible, provided they meet program requirements and will serve as the buyer’s primary residence.

Can the Next Step Program be combined with other assistance programs?

Yes, the program can often be combined with other state or local assistance programs to maximize financial support.

Are there debt-to-income (DTI) ratio limits for the Next Step Program?

Yes, the program typically allows a maximum DTI ratio of 45%, though exceptions may apply based on other qualifying factors like credit history.

Is the down payment assistance a loan or a grant?

The down payment assistance is provided as a second mortgage loan, which may be forgivable if specific conditions, such as living in the home for a set period, are met.

Are there reserve requirements for borrowers in the Next Step Program?

No specific reserve requirements are imposed, but reserves may strengthen an applicant’s financial profile during the approval process.

Don't miss out!

Check out our program and get started today.

Get Started Now

What fees are associated with the Next Step Program?

Standard fees, including origination, appraisal, and processing fees, may apply. Borrowers should consult their lender to understand all potential costs.

What happens if I sell or move before meeting the program's requirements?

If you sell or move before fulfilling the program’s conditions, you may be required to repay some or all of the assistance provided.

Can the Next Step Program be used to refinance an existing home?

No, the program is specifically designed for purchasing a primary residence and does not apply to refinancing.

Are there location restrictions for the Next Step Program?

Yes, the property must be located in Missouri, and additional guidelines may apply based on whether the property is in a targeted or non-targeted area.

What are the benefits of the Next Step Program?

The program provides affordable mortgage rates, higher income limits, and down payment assistance, making homeownership more accessible to a broader range of buyers.

What is the loan term for the Next Step Program?

The program provides a 30-year fixed-rate mortgage, offering long-term affordability and predictable monthly payments for homebuyers.

Get More Information

By clicking Submit, you agree that Bootcamp For Buyers, its affiliates, or associated third parties may contact you via emails, calls or texts, including via automated means. You also agree to our Terms of Use and Privacy Policy.