Buying and moving into a new home is one of life’s great experiences, especially if you’re buying your first home. From getting that pre-approval to the “yes!” response on an offer to closing and moving in, every step is exciting. And while the process is engaging and fun, it’s important to prepare for moving day […]
Avoid 20% Down Payment When Applying for Your Mortgage in Missouri
There is a common misconception that a buyer has to put a 20% down payment on their mortgage in Missouri. There have been studies showing that most buyers put less than 20% down and that some programs are not as difficult as one may think to qualify. One common zero payment mortgage in Missouri is VA. Some people think that in order to do this type of loan you must have served or be serving in the military. This is not true. Surviving veteran spouses and Officers of the Public Health Service may also qualify for this loan.
The USDA program also provides a zero payment option. With this choice, restrictions include your income level and that the location of your home must be in a rural area. Funds for this loan are limited, so you have a better chance to get approved early in the year.
FHA is a popular mortgage in Missouri and used to only be popular for first time buyers and low income consumers.
A conventional loan is a standard mortgage which is backed by Freddie Mac and Fannie Mae. This option requires better credit scores, which can vary by lender.
The downfall of choosing a program with no upfront costs is having a slightly higher interest rate. In most cases you may have to still pay mortgage insurance either upfront or annually, so it is important to shop around to see which mortgage service best fits your needs.
Apply online today and we will have Cornerstone professional contact you within 24 hours.The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.