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By Tyler Thompson · Licensed Real Estate Agent · Updated April 21, 2026

Homebuyer Programs in Raytown, MO (2026)

Population: 29,445 | Median home price: $215,000 | Est. closing costs: $4,500 - $6,500

Skyline of Raytown, MO

Raytown is a close-in Kansas City suburb in Jackson County, Missouri with roughly 29,445 residents and a median home price near $215,000 — one of the most affordable entry points anywhere in the KC metro. Buyers here can stack the state's MHDC First Place or Next Step loans (up to 4% of the first mortgage as forgivable down payment/closing cost assistance) with Habitat for Humanity Kansas City's Down Payment Assistance Grant (up to $10,000) since Jackson County is inside Habitat KC's service area. Truman Heritage Habitat for Humanity also builds and sells affordable homes directly to qualifying Raytown residents with 0% interest mortgages capped at roughly 30% of household income. Combined with federal options like FHA, VA, USDA and conventional low down payment programs, these assistance sources can bring out-of-pocket costs for a typical Raytown purchase down to a few thousand dollars.

State Programs in Missouri

MHDC First Place Loan Program
Type:
Forgivable Loan
Amount:
4% of the total first mortgage amount as a 0% interest, 100% forgivable second loan (Cash Assistance Loan) for down payment and closing costs, paired with a below-market 30-year fixed-rate first mortgage (FHA, VA, USDA-RD, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage). Buyers who skip the assistance typically get a rate 0.25%-0.50% lower.
First-time only:
Yes
MHDC Next Step Loan Program
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

FHA Loans
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
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

Habitat KC Down Payment Assistance Grant
Type:
Grant
Amount:
Up to $10,000 toward down payment.
First-time only:
Yes
Truman Heritage Habitat for Humanity Homebuyer Program
Type:
Zero-Interest Loan
Amount:
Affordable Habitat-built home sold with a 0% interest mortgage; monthly payment capped at roughly 30% of household income
First-time only:
No

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How to Apply

Step 1: Check your eligibility. Most Missouri programs require income at or below MHDC limits for Jackson County, a credit score of 640 or higher, and a first-time homebuyer status (not having owned in the past three years). For Habitat KC's Down Payment Assistance Grant, household income must be at or below 80% Area Median Income and your debt-to-income ratio under 45%.

Step 2: Complete a HUD-approved homebuyer education course. MHDC and Habitat KC both require completion of a HUD-approved course. You can find a counselor by calling HUD's toll-free line at (800) 569-4287 or through the Consumer Financial Protection Bureau at (855) 411-2372 — both will route you to an approved Kansas City metro counseling agency.

Step 3: Get pre-approved with an MHDC-approved lender. MHDC First Place and Next Step loans are only available through their certified lender network. Ask the lender to quote both the First Place option (4% forgivable Cash Assistance Loan, forgiven 1/60th per month starting in year 5) and the Next Step option (4% assistance, fully forgiven after 10 years of owner-occupancy).

Step 4: Apply to Habitat KC's Down Payment Assistance Grant if you qualify. Contact Habitat for Humanity Kansas City to start the DPA grant application once your property is under contract in Jackson County. The grant provides up to $10,000 toward down payment and does not need to be repaid.

Step 5: Explore Truman Heritage Habitat for Humanity if you want to buy a Habitat-built home. Truman Heritage serves Raytown directly and sells newly built or rehabbed homes to qualifying families with a 0% interest mortgage. Application windows open periodically — contact Truman Heritage Habitat for Humanity at their Independence office to check current openings.

Step 6: Find a home within Raytown and MHDC purchase price limits. Confirm the purchase price fits inside MHDC's statewide non-targeted limit (updated annually, generally comfortable for Raytown's price range). Most Raytown homes list well below MHDC's cap.

Step 7: Submit your application and close. With an MHDC loan, closings typically run 45–60 days from contract. Grant and forgivable assistance funds are delivered at the closing table by the lender and administering partners.

Frequently Asked Questions

How much down payment assistance can I get in Raytown?+
Raytown buyers can stack multiple programs. MHDC First Place or Next Step provides up to 4% of the first mortgage amount (often $6,000 to $10,000 on a typical Raytown loan) as forgivable assistance. Habitat for Humanity Kansas City's Down Payment Assistance Grant adds up to $10,000 more for qualifying buyers in Jackson County. Combined assistance can realistically cover a full 3%–5% FHA or conventional down payment plus much of the closing costs.
Do I have to be a first-time homebuyer?+
For MHDC First Place and Habitat KC's DPA Grant, yes — you must not have owned a home in the past three years. MHDC's Next Step program is open to both first-time and repeat buyers as long as you meet the income limits. Federal VA and conventional HomeReady/Home Possible programs have no first-time buyer requirement.
What is the maximum home price?+
MHDC sets annual non-targeted purchase price limits for Missouri (updated yearly and typically well above Raytown's median of about $215,000). Habitat KC's DPA Grant has no hard cap but requires the property sit inside their service area (Jackson, Platte, or Clay County in Missouri). Raytown's affordability means the vast majority of available homes fit comfortably inside every program's limit.
What homebuyer education is required?+
MHDC and Habitat KC both require completion of a HUD-approved homebuyer education course. Call HUD at (800) 569-4287 or the CFPB at (855) 411-2372 to be routed to a Kansas City metro HUD-approved counseling agency. Courses are typically free or low-cost and can often be completed online.
Does Truman Heritage Habitat for Humanity serve Raytown?+
Yes. Truman Heritage Habitat for Humanity's service area expressly includes Raytown along with Blue Springs, Grain Valley, Greenwood, Independence, Lee's Summit, Lone Jack, Oak Grove, Sugar Creek, and Kansas City east of I-435. Qualifying families can purchase Habitat-built homes with 0% interest mortgages capped near 30% of household income.
Can I use MHDC and Habitat KC assistance together?+
Yes — MHDC's forgivable assistance is layered behind your first mortgage, and Habitat KC's grant is applied at the closing table. Your MHDC-approved lender will coordinate the stacking. Make sure to tell both your lender and Habitat KC up front that you plan to combine programs so the paperwork lines up.

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