See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 20, 2026
Homebuyer Programs in O'Fallon, MO (2026)
O'Fallon is one of Missouri's largest and fastest-growing cities, located in St. Charles County northwest of St. Louis, with a median home value of approximately $348,000. First-time buyers in O'Fallon can access the City of O'Fallon Down Payment Assistance Program — a zero-interest forgivable second mortgage of up to $10,000 administered by Beyond Housing — alongside Missouri Housing Development Commission programs that provide up to 4% of the loan amount through the MHDC First Place and Next Step Cash Assistance Loan. Habitat for Humanity of St. Charles County builds affordable homes in the county with 0% interest mortgages for qualifying families. Stacking the city's $10,000 assistance with the state's 4% MHDC help can deliver well over $20,000 toward a qualified O'Fallon purchase, and the city program is forgiven after just 5 years of owner-occupancy.
City Programs in O'Fallon
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| O'Fallon Down Payment Assistance Program | Forgivable Loan | Up to $10,000 as a zero-interest forgivable second-mortgage loan for down payment and/or closing cost assistance. | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000 as a zero-interest forgivable second-mortgage loan for down payment and/or closing cost assistance.
- First-time only:
- Yes
State Programs in Missouri
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| MHDC First Place Loan Program | Forgivable Loan | Up to 4% of the loan amount via the Cash Assistance Loan (CAL) for down payment and closing costs, paired with a below-market fixed-rate first mortgage (Conventional, FHA, VA, or USDA). | Yes | View → |
| MHDC Next Step Loan Program | Forgivable Loan | Up to 4% of the loan amount via the Cash Assistance Loan (CAL) for down payment and closing costs, paired with a fixed-rate first mortgage (Conventional, FHA, VA, or USDA). | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 4% of the loan amount via the Cash Assistance Loan (CAL) for down payment and closing costs, paired with a below-market fixed-rate first mortgage (Conventional, FHA, VA, or USDA).
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 4% of the loan amount via the Cash Assistance Loan (CAL) for down payment and closing costs, paired with a fixed-rate first mortgage (Conventional, FHA, VA, or USDA).
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity St. Charles County Homeownership Program | Zero-Interest Loan | Affordable Habitat-built or rehabilitated home sold with a 0% interest mortgage; monthly payment sized to be affordable to the family's income. | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable Habitat-built or rehabilitated home sold with a 0% interest mortgage; monthly payment sized to be affordable to the family's income.
- First-time only:
- No
How to Apply
Check your eligibility. The O'Fallon DPA Program requires household income at or below 80% of the St. Louis MSA Area Median Income and first-time homebuyer status (no homeownership in the past 3 years). MHDC Next Step has higher income limits and is open to repeat buyers.
Complete Beyond Housing's Homebuyer Education course. Beyond Housing is the HUD-approved housing counseling agency administering the O'Fallon DPA on the city's behalf. You must also participate in their Housing Counseling Program at least 10 days prior to closing.
Contact the City of O'Fallon's Grants & Assistance office. Call Alexis Jaegers at 636-379-5411 or email ajaegers@ofallon.mo.us to confirm funding is available and request the current application packet.
Get pre-approved with an MHDC-participating lender. Ask the lender to price out the Cash Assistance Loan at up to 4% of the loan amount through MHDC First Place (first-time buyers) or Next Step (all qualified buyers).
Find a home inside O'Fallon city limits. The $10,000 city DPA requires the property to be within O'Fallon. MHDC programs apply statewide but have annually-updated purchase price caps — confirm your target price falls within the current limit.
Submit the full application package. Beyond Housing coordinates the underwriting and loan closing for the O'Fallon DPA. Expect 30-45 days from application to closing.
Close on the home. Your lender and title company will apply the $10,000 forgivable second mortgage and any MHDC Cash Assistance Loan at closing. Budget roughly $7,000-$10,500 for typical closing costs on a median-priced O'Fallon home.