By Danny Stansbury, Stansbury Homes · First-Time Buyers · Nov 12, 2026 · 4 min read
Is down payment assistance in Missouri a grant?
Usually not. MHDC's programs (MHDC Homebuyer Programs) describe the assistance as a second loan. The current program manuals describe it as forgivable over ten years if you stay in the home and keep the original loan. Sell or refinance sooner and you repay all or part of it.
I break down the details in Missouri first-time buyer and down payment assistance.
How do I find out if I qualify?
- Talk to an MHDC certified lender. Not every lender offers these programs.
- Ask about First Place (first-time buyers and qualified veterans) and Next Step (higher income limits, first-time or repeat buyers).
- Check the income and purchase price limits for your county.
- Ask whether any city or county programs are open right now.
What is PMI and how do I avoid it?
- Put 20% down on a conventional loan and there is no PMI.
- Ask to cancel it once your balance is scheduled to hit 80% of the original value. Extra payments can get you there sooner (CFPB).
- Automatic end at 78% if you're current.
- VA loans don't charge monthly mortgage insurance, but they have a funding fee unless you're exempt.
What about FHA mortgage insurance?
FHA uses MIP, not PMI. For FHA loans endorsed on or after March 20, 2023, the yearly premium lasts 11 years if you put 10% or more down. With less than 10% down, it lasts the life of the loan (HUD Mortgagee Letter 2023-05). Compare both loans with your lender, and see the payment difference on the mortgage calculator.
Frequently asked questions
Are there first-time home buyer grants in Kansas City?
True grants are uncommon. On the Missouri side, MHDC's First Place and Next Step programs offer down payment and closing cost help as a forgivable second loan through certified lenders. Ask your lender which local programs are open.
Can I avoid PMI with less than 20% down?
Not on most conventional loans. You can ask to cancel PMI when your balance is scheduled to reach 80% of the original value. It generally ends on its own at 78% if your payments are current.
Is FHA mortgage insurance the same as PMI?
No. FHA charges an upfront premium and an annual MIP. For loans endorsed on or after March 20, 2023, the yearly FHA mortgage insurance (MIP) lasts 11 years with at least 10% down. With less than 10% down, it lasts the life of the loan.
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