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MHDC Next Step Loan - Cash Assistance Loan (CAL)

Missouri Housing Development Commission (MHDC) · Missouri

Last verified
See what you qualify forOfficial program site →
Assistance

4%

Of the purchase price, as the program sets it

Income limit

$139,560

The household income limit the program publishes

Price cap

$692,211

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 10 years

What is MHDC Next Step Loan - Cash Assistance Loan (CAL)?

MHDC Next Step Loan - Cash Assistance Loan (CAL) is a forgivable loan for homebuyers in Missouri, administered by Missouri Housing Development Commission (MHDC).

  • MHDC Next Step DPA option for buyers above First Place limits: below-market 30-yr first mortgage plus a 100% forgivable 4% second, forgiven over 10 years; open to repeat buyers.
  • 4% forgivable second.
  • Higher income & price limits than First Place.
  • Open to repeat buyers.
  • Forgiven over 10 years.
  • Funding comes from State.

How much assistance does it provide?

MHDC Next Step Loan - Cash Assistance Loan (CAL) provides assistance worth 4% of the purchase price, as set by the program.

  • The program can be combined with MHDC Next Step first mortgage (required).
  • Amounts are the program's published maximums, not an offer — Missouri Housing Development Commission (MHDC) determines any individual award.

Do you have to pay it back?

MHDC Next Step Loan - Cash Assistance Loan (CAL) is forgiven after 10 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale or refinance before forgiveness completes, No longer primary residence, and Loan not maintained 10 years.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

MHDC Next Step Loan - Cash Assistance Loan (CAL) is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 640 minimum; up to 50% DTI on FHA/VA/USDA with 680+.
  • Residency: Eligible property in Missouri; occupy within 60 days.
  • Must use an MHDC Certified Lender; allocated first-come. Possible federal recapture if sold within 9 years.

The program excludes

  • Purchases above the $692,211 price cap
  • Households above $139,560

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

MHDC Next Step Loan - Cash Assistance Loan (CAL) limits household income to $139,560.

  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

MHDC Next Step Loan - Cash Assistance Loan (CAL) caps the purchase price at $692,211.

  • Eligible property types include Single Family, Condo, Townhouse, 2-4 Unit, and Manufactured.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

MHDC Next Step Loan - Cash Assistance Loan (CAL) names veterans and active-duty service members among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

MHDC Next Step Loan - Cash Assistance Loan (CAL) serves buyers purchasing anywhere in Missouri.

How do you apply?

Applications for MHDC Next Step Loan - Cash Assistance Loan (CAL) go through Missouri Housing Development Commission (MHDC), which publishes the current terms and the application steps on its own site.

  1. Contact Missouri Housing Development Commission (MHDC) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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