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Today’s Rates for First Time Homebuyers in Missouri

Wednesday, December 13, 2017

Mortgage rates are at 4.11% for the 30 year fixed loan program and at 3.31% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 3.42%. Check out FHA and VA rates as well if you are doing low or no down payments.

Missouri First Time Home Buyer Checklist

1. Decide on your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 

2. Get familiar with your credit score. Your credit should fall somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus, Equifax, Experian or TransUnion. 

3. Shop interest rates from different lenders in your part of Missouri. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.

4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 

5. Determine a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 

6. Begin home shopping. Be sure to avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Missouri FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Missouri page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Missouri home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like St. Louis, Springfield, and Kansas City are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

Missouri Grant and Assistance Programs

The Missouri Housing Development Commission (MHDC) provides home financing assistance and tax credit programs to eligible state residents. 

MHDC's First Place Loan Program facilitates a 3% cash grant via a second mortgage that may go toward down payment and closing costs. The program may be used in conjunction with an FHA, USDA, VA or Fannie Mae qualified 30 year fixed-rate mortgage. Income caps apply. Read more on the online First Place brochure.

Another option the Mortgage Credit Certificate program, or MCC, which allows homeowners to claim a portion of their annually paid mortgage interest for up to $2,000 in savings per year. The MCC tax credit is available only to low or moderate income home buyers. See if your income applies by visiting the online Missouri MCC tax credit brochure

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user suit Lenders in: Missouri.

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