Missouri Home Loans 2026 — Complete Guide
The number people miss: If you live or work in Kansas City or the City of St. Louis, a 1% local earnings tax applies on top of your regular income tax — a cost that does not show up in typical mortgage affordability calculators but affects your real take-home pay and how much house you can comfortably afford.
Missouri Down Payment Assistance — MHDC Programs
The Missouri Housing Development Commission (MHDC) offers down payment assistance through its First Place Loan Program, paired with a 30-year fixed first mortgage.
MHDC Down Payment Programs
CAL vs. Non-CAL — the tradeoff: The Cash Assistance Loan gives you money at closing but comes with a somewhat higher first-mortgage rate. The Non-Cash option skips the upfront assistance in exchange for a lower rate on your first mortgage. If you have enough savings to cover the down payment yourself, running the numbers on Non-CAL's lower rate over 30 years is worth doing before defaulting to the cash option.
Eligibility & Income Limits
First Place generally requires first-time buyer status (waived for veterans and targeted areas) and a minimum 640 credit score. Next Step opens the door to repeat buyers with somewhat higher income limits. Both require MHDC-approved lenders and household income under county-specific limits.
Confirm your exact county limit and current terms at MHDC.com before applying. Missouri also allows a state income tax deduction of up to $800 (single) or $1,600 (joint) for contributions to a First-Time Homebuyer Savings Account.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| MHDC First Place first mortgage | Below market | Confirm current rate with an MHDC-approved lender |
2026 Loan Limits — Flat Statewide
Missouri has no FHA or conforming high-cost counties in 2026, including both the St. Louis and Kansas City metro areas.
| Loan Type | Limit (Statewide, All 115 Counties) |
|---|---|
| FHA | $541,287 |
| Conventional (Conforming) | $832,750 |
| VA | No county limit for buyers with full entitlement |
Confirm current limits at HUD.gov, though Missouri has held flat statewide limits for several years running.
Property Tax in Missouri
What Buyers Should Budget For
Missouri's property tax rate sits close to the national median, and residential property is assessed at a constitutionally fixed 19% of true value before your local rate applies. Seniors 65 and older or permanently disabled residents can claim the Property Tax Credit ("Circuit Breaker"), worth up to $1,100 for homeowners or $750 for renters, with income limits increasing in 2026. Separately, Senate Bill 190 allows counties to adopt a senior property tax freeze that locks in your bill at the level from the year you turned 65 — but like Georgia's homestead cap, this is opt-in county by county, not automatic statewide, so confirm whether your specific county has adopted it. Buyers in Kansas City or the City of St. Louis should also budget for each city's 1% earnings tax, which applies on top of state and federal income tax.
Pick Your Loan Type
Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Missouri may run additional hero-specific loan programs on top of the general MHDC options covered here. Browse the Hero Home Loan Programs hub and select Missouri for profession-specific options.
Frequently Asked Questions
Bottom Line: Missouri offers solidly affordable home prices, near-average property tax, and MHDC assistance that meaningfully lowers the cash needed at closing. Kansas City and St. Louis buyers should factor the 1% local earnings tax into their budget, and it's worth comparing MHDC's Cash Assistance against the Non-Cash lower-rate option before choosing.
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