Missouri · State guide
How to buy a house in Missouri
One of the most affordable and buyer-friendly states in the country — low property taxes, no transfer tax, and a 4% forgivable down payment grant — set against high and rising home insurance. Here is the playbook for buying in the Show-Me State.
Last updated June 2026
Why Missouri is different
Buying a house in Missouri, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Missouri has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Missouri is one of the most affordable states (a statewide median around $284,000; Kansas City and the St. Louis suburbs are the hottest markets, while Springfield and much of the state are cheaper). The Missouri Housing Development Commission (MHDC) offers a 4% forgivable down payment grant, property taxes are below average, and there’s no transfer tax.
Two things to plan for. Missouri is a title-company state (no attorney needed), but home insurance is high and rising here — it sits in a severe hail, wind, and tornado corridor, with added earthquake risk in the southeast Bootheel. Use the 50-state hub to compare other states.
The market
What homes cost in Missouri
Among the most affordable states, with a gap between the metros and the rest.
The statewide median sale price was about $284,000 in spring 2026 (Redfin), up around 5% year over year, well below the national median. Prices vary by area:
Median prices by area
St. Louis County ~$312K (fast-moving, ~11 days) · Kansas City (Missouri side) ~$305K and one of the hotter metros (+8.9%) · Columbia (Boone, university town) ~$302K–$350K · St. Louis city ~$255K · Springfield (Greene) the most affordable big city, ~$213K. The KC and St. Louis suburbs (Lee’s Summit, O’Fallon, Crestwood) are the most competitive, and the Lake of the Ozarks is the state’s resort market.
Down payment & rate help
MHDC programs
You don’t apply directly — you work through an MHDC-certified lender. A 640 credit score and a homebuyer course are the main requirements.
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First Place Loan
The core: a 30-year fixed below-market mortgage for first-time buyers and veterans. Pair it with the Cash Assistance Loan — a second loan equal to 4% of your mortgage for down payment and closing costs — or skip the help for a lower rate (the Non-Cash option).
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The 4% is forgivable
The standout: that Cash Assistance Loan is 100% forgivable if you stay 10 years. There’s no monthly payment, and after year five it shrinks by 1/60 each month until it’s fully forgiven at year 10 — so for most buyers who stay put, it’s effectively a grant.
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Next Step & the tax credit
Next Step is the version for repeat buyers and higher incomes, with the same 4% forgivable help. MHDC also offers a Mortgage Credit Certificate (MCC) — a federal tax credit worth up to $2,000 a year of your mortgage interest (though it can’t be combined with First Place).
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Local & federal help
Cities add their own: Springfield up to $9,000 and Columbia up to $10,000 (both forgivable after 10 years). Plus FHA (3.5% down), VA (0% down), and USDA (0% down) in rural areas.
The MHDC rules in brief
You’ll generally need a 640 credit score (660 for a manufactured home), a DTI up to 45% (50% with a 680+ score), completion of a homebuyer education course, and household income and purchase price under limits that vary by metro — roughly $96,000 to $111,400 income (1–2 people) and a price cap around $544,000 in non-targeted areas (higher for Next Step and targeted areas). The 4% Cash Assistance is forgivable over 10 years; weigh it against the Non-Cash option’s lower rate if you already have funds. “First-time” means no ownership in three years (waived for veterans).
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Property taxes
Property taxes in Missouri: below average
Missouri property taxes are below the national average — an effective rate around 0.8%–1.0%, with a typical bill near $1,900. The state has an unusual quirk: residential homes are assessed at just 19% of market value (then multiplied by local levies), and Missouri also taxes personal property like cars each year. There’s no transfer tax — the state constitution bars one — so you’ll pay only nominal recording fees at closing.
Seniors can freeze their taxes — and watch reassessments
A major recent change: under SB 190 (and SB 756), counties can now freeze property taxes for seniors eligible for Social Security (generally 62+). Most populous counties — St. Louis, Jackson, Clay, Greene — have adopted it, but application windows vary by county (often March–June), so apply locally. One caution for Kansas City buyers: Jackson County’s 2023 reassessment raised values ~30% and triggered years of litigation, so budget for assessment volatility and watch the Board of Equalization appeal deadline (second Monday in July; third Tuesday in St. Louis County). Lower-income seniors may also claim the state “circuit breaker” credit.
Closing & costs
Closing on a home in Missouri
Missouri is a title-company / escrow state — a title company searches title, closes, and records the deed, and an attorney isn’t required. Title insurance is customary (the seller often pays the owner’s policy, the buyer the lender’s — but it’s negotiable), and because premiums aren’t state-fixed, shopping title and escrow fees can save money. The standout feature: Missouri has no transfer tax, so closing costs are lower than most — buyers typically pay 2%–5%. On financing, the 2026 conforming limit is $832,750 and the FHA floor is $541,287 in every county, including the Kansas City and St. Louis metros.
Light disclosure — so inspect carefully
Missouri has relatively few mandatory disclosures: sellers must reveal known material defects (and the Missouri REALTORS® disclosure form is standard practice), plus statutory disclosures for meth production and nearby landfills, and the federal lead-paint disclosure for pre-1978 homes. Because the legal standard is “known defects,” the burden is on you to investigate — so always get your own home inspection. Concealing a material fact is barred by Missouri’s consumer-protection law, but that’s no substitute for due diligence.
Insurance & risks
Insuring a Missouri home
This is the cost rising fastest for Missouri owners. Home insurance here is high and climbing — averaging roughly $2,800–$3,500 a year (up about 44% from 2019 to 2024) — because Missouri sits in a severe-storm corridor. The big drivers are hail and damaging winds (253 hailstorms in 2025 alone) and tornadoes — the 2011 Joplin tornado was among the deadliest in US history, and a May 2025 EF3 tornado in St. Louis killed five and damaged 5,000+ buildings.
A wind/hail deductible, roof age, and earthquake in the Bootheel
Expect a separate wind/hail deductible that’s a percentage of your home’s value (often 1%–5%), not a flat amount, and close scrutiny of roof age — older roofs may be settled at depreciated (actual-cash) value or be hard to insure at all. Two more gaps: flood is never covered by a standard policy (add an NFIP policy near the Missouri or Mississippi rivers), and if you’re buying in the southeast Bootheel, you’re over the New Madrid earthquake zone — standard policies exclude earthquakes, so you’d need separate coverage (with high 10%–25% deductibles). Missouri has no FAIR Plan, so hard-to-insure homes use surplus-lines carriers.
Wherever you buy
The steps that work the same in Missouri
Missouri sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Missouri: common questions
How much money do you need to buy a house in Missouri?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$284,000 home that’s roughly $8,500–$10,000 down plus closing costs — kept lower here by the lack of a transfer tax. MHDC’s 4% forgivable help can cover much of the down payment. See how much you really need →
Does Missouri have down payment assistance?
Yes. MHDC’s First Place and Next Step programs offer a Cash Assistance Loan equal to 4% of your mortgage, forgivable over 10 years. Springfield (up to $9,000) and Columbia (up to $10,000) add local help. See assistance programs →
Is the MHDC 4% assistance really forgivable?
Yes, for most buyers. The Cash Assistance Loan is forgiven if you stay 10 years — after year five it shrinks 1/60 each month until it’s fully forgiven at year 10. There’s no monthly payment, so it acts like a grant if you don’t move early.
Does Missouri have a transfer tax?
No. Missouri is one of the few states with no real estate transfer or deed tax — the state constitution prohibits one — so closing costs here are lower than most. You pay only nominal recording fees.
Are property taxes low in Missouri?
Yes — below the national average, with an effective rate around 0.8%–1.0%. Homes are assessed at just 19% of value, and seniors 62+ can now freeze their taxes in most populous counties under SB 190.
What credit score do you need in Missouri?
MHDC generally requires a 640 (660 for a manufactured home). For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate and a higher allowed DTI. Check the score by loan type →
Do I need an attorney to buy a house in Missouri?
No. Missouri is a title-company/escrow state — a title company handles the search, closing, and recording. Title premiums aren’t fixed by the state, so it’s worth shopping title and escrow fees.
Why is home insurance so expensive in Missouri?
Missouri sits in a severe hail, wind, and tornado corridor, so premiums are high and rising (~$2,800–$3,500). Expect a percentage wind/hail deductible, and in the southeast Bootheel, separate earthquake coverage for the New Madrid zone.
What’s the conforming loan limit in Missouri?
$832,750 in every county for 2026, with the FHA floor at $541,287 statewide — including the Kansas City and St. Louis metros. Loans above the limit are jumbo.
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