Our mortgage professionals are here to help you choose the plan that is right for you and help guide you through the process to make it as smooth as possible.
If you are a first-time home buyer in the St. Louis area, there are many programs available to help you achieve your dream of owning a home. The MHDC, Missouri Housing Development Commission, offers several mortgage programs, with and without down payment assistance. You can qualify as a first-time home buyer as long as you haven’t owned a primary residence within the last three years.
First-Time Home Buyer Programs
As a first-time home buyer, you can take advantage of several programs offered to you. Our mortgage professionals are here to help you choose the plan that is right for you and help guide you through the process to make it as smooth as possible.
- Conventional Mortgages – With as little as 3% down, a first-time home buyer can get a conventional loan as long as the mortgage meets the requirements set out by Fannie Mae and Freddie Mac. If you can put 20% or more down, you will not have to pay mortgage insurance. Most lenders typically require a minimum credit score of 620.
- FHA Loans – For first-time buyers with lower credit scores, this is a popular program. The FHA, or Federal Housing Administration, allows down payments as low as 3.5% for buyers with credit scores of 580 or higher. This program will insure loans for buyers with credit scores as low as 500 but requires a 10% down payment.
- USDA Loans – The most appealing part of the USDA home loan for a buyer is the 100% financing. The U.S. Department of Agriculture issues USDA loans through the USDA Rural Development Guaranteed Housing Loan Program and is an incredible opportunity to qualified buyers living in rural communities. These guaranteed loans have already assisted thousands of home buyers across the nation by catering to lower income families with lower interest rates and loan terms.
- VA Loans – The VA mortgage offers 100% financing to veterans and their spouses for the purchase of owner-occupied homes. Something some people don’t realize is that they can use their VA benefits to buy up to a 4-family unit. You could live in one unit and have three other people pay your mortgage, even with no down payment! In addition to there being no down payment, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.
- Homestyle Renovation Mortgage – This Fannie Mae loan package combines the cost of your new home with up to 50% of its post-construction value, making it possible for a St. Louis home buyer to purchase a house that requires repair. So long as the funds are used to increase the value of the property with fixed structures and repairs, the Homestyle Renovation mortgage is the perfect solution for the homebuyer who likes a house and wants to turn it into a home that he loves.
- FHA 203B – To promote homeownership, the Federal Housing Administration will provide the insurance needed to help high-risk buyers secure a mortgage. With less than 5% down, an FHA loan benefits people who have had financial problems in the past and want a second chance at homeownership while at the same time building up their credit scores. The FHA 203B is available for single-family home purchases that will be owner-occupied.
- FHA 203K – The FHA 203K works like the FHA 203B, except additional funding of up to $35,000 may be added to the mortgage amount to help with any major repairs or renovations a house may need. This construction loan alleviates the need for a home buyer to seek additional funding through home equity loans or lines of credit.