Mortgage Guide for Missouri
Missouri offers a favorable mortgage landscape with a median home price near $250,000 , no state transfer tax, and several assistance programs through the Missouri Housing Development Commission for first-time and repeat buyers.
Mortgage Numbers for Missouri
| Median Home Price | $250,000 |
|---|---|
| Baseline Conforming Limit | $806,500 |
| Conforming Limit Ceiling | $806,500 (standard) |
| FHA Loan Limit (Baseline) | $524,225 |
| Avg. Property Tax Rate | 0.97% |
| Avg. Homeowners Insurance | ~0.35% of home value (avg. annual premium) |
| Transfer Tax | None (No state transfer tax or real estate excise tax.) |
| High-Cost Counties | No |
Data sources: FHFA (conforming limits), HUD (FHA limits), U.S. Census (home values), State Department of Revenue (property tax). Updated annually unless noted. Data as of 2026-02-26.
What This Means for Your Mortgage
Conforming Loan Limits and Financing Options
The 2025 conforming loan limit for Missouri is $806,500 across all counties. Missouri has no designated high-cost counties, meaning the baseline limit applies statewide. Given that the median home price falls well below this threshold, most Missouri borrowers can secure conventional financing without needing a jumbo loan. Borrowers purchasing higher-value properties in premium neighborhoods of Kansas City or St. Louis may still encounter situations where jumbo financing becomes necessary, but these represent a small fraction of the overall market.
Property Taxes and Insurance Costs
Missouri's effective property tax rate averages approximately 0.97% , which is near the national median. Property tax rates vary significantly by county and municipality. Jackson County (Kansas City) and St. Louis County tend to carry higher rates, while many rural counties assess lower rates. Missouri uses a fractional assessment system where residential property is assessed at 19% of market value, with the tax rate then applied to the assessed value rather than the full market value. Homeowners insurance in Missouri averages roughly 0.35% of the home's value annually , though properties in tornado-prone regions or flood zones may face higher premiums. Lenders factor both property taxes and insurance into monthly escrow calculations, directly affecting the borrower's debt-to-income ratio.
Transfer Taxes and Closing Costs
Missouri does not impose a state-level transfer tax or real estate excise tax on property sales. This eliminates one cost category that borrowers and sellers face in many other states. Buyers should still budget for recording fees, title insurance, lender origination charges, appraisal fees, and other standard closing costs. Missouri is a title-company closing state, and closings are typically handled by title companies or attorneys depending on local practice. Documentary stamp taxes are not assessed at the state level, though some municipalities may impose local recording surcharges .
Government-Backed Loan Programs in Missouri
FHA loans are widely used in Missouri, particularly among first-time buyers and borrowers with moderate credit scores. The FHA loan limit in Missouri matches the national floor, and the program's lower down payment requirements make it a practical option in many markets. VA loans serve Missouri's significant military and veteran population, with major installations including Fort Leonard Wood and Whiteman Air Force Base contributing to steady VA loan activity across the state. USDA loans are particularly relevant in Missouri, where large portions of the state qualify as eligible rural areas. Many communities outside the Kansas City and St. Louis metro cores fall within USDA-eligible boundaries, giving buyers in those areas access to zero-down-payment financing.
Missouri Housing Development Commission (MHDC) Programs
The Missouri Housing Development Commission administers several programs designed to assist homebuyers with down payment and closing cost expenses. The MHDC First Place Loan program and Next Step program provide below-market-rate first mortgage financing paired with down payment assistance in the form of second loans or grants. Eligibility requirements include income limits that vary by county and household size, purchase price limits, homebuyer education completion, and minimum credit score thresholds . These programs are available through MHDC-approved lenders statewide. Borrowers considering MHDC assistance should connect with a participating lender early in the process, as program funds are allocated on a first-come, first-served basis and availability may vary throughout the year.
Regional Considerations
Missouri's two major metro areas present distinct market dynamics. The Kansas City metro, which spans the Missouri-Kansas border, features strong market activity with median prices that exceed the statewide figure in many neighborhoods . The St. Louis metro, bordering Illinois, offers a wide range of price points with some of the most affordable urban housing in the Midwest. Springfield and Columbia serve as regional centers with active housing markets driven by university populations and healthcare employment. Rural Missouri, covering the majority of the state's geographic area, features lower price points and strong eligibility for USDA financing. Borrowers purchasing in flood-prone areas along the Missouri and Mississippi Rivers should account for flood insurance requirements, which add to monthly housing costs and affect qualification calculations. Missouri requires private mortgage insurance on conventional loans with less than 20% down, consistent with national standards.