Home Loans for First Time Homebuyers in Missouri

Missouri First Time Buyer Loans from Union Home Mortgage

Most first-time homebuyers have a lot of questions when it comes to financing their new home. After all, purchasing a new home is a major investment and it is important to consider all your options before selecting a mortgage loan.

Fortunately, first-time homebuyers in Missouri have a number of attractive loan programs to choose from, including:

State Bond Programs. The Missouri Housing Development Commission’s (MHDC) First Place Loans were established to help first-time homebuyers buy their first homes.

Cash-Assistance Loans (CAL) are geared toward borrowers who need assistance with the down payment or closing costs associated with buying a home. CAL Loans are five-year second mortgages valued at 3% of the original loan. These 0% interest loans require no monthly payments and are forgiven after five years provided the property remains owner-occupied during that time period.

Non-CAL Loans (Non-CAL) offer lower-interest rates to qualified first-time buyers in Missouri who do not need assistance with their down payment or closing costs. One main benefit of this program is lower monthly mortgage payments due to the lower interest rates. 

In addition to Missouri’s CAL AND Non-CAL programs, there are a number of other FHA loan programs available. For example, the FHA offers 203(k) rehabilitation loans, energy efficient mortgages, loans for manufactured or mobile homes, and several others programs tailored to make homeownership more affordable. 

FHA Loans. Home loans backed by the Federal Housing Administration (FHA) often require lower down payments and closing costs than most conventional loans. In general, they also have less stringent credit requirements. 

Each of these loan programs has its own set of eligibility requirements. To identify which FHA loan program may be right for you, we recommend contacting one of our experienced loan professionals for a no-cost, no-obligation consultation. 

VA Loans. Veteran’s Administration (VA) financing is currently available to over 30 million military veterans and active duty service personnel. This number includes new borrowers, as well as those who have already used all or a portion of their loan benefit to purchase a home. 

If you are a first-time homebuyer in Missouri who qualifies for VA financing, there are a number of key advantages you’ll want to consider. These advantages include 100% financing options (no down payment), no monthly mortgage insurance premiums, and 30-year flexible repayment plans. 

FMHA/USDA Home Loans. If you are a first-time homebuyer looking to purchase a home in a rural part of Missouri, you may want to consider a USDA loan.

One key advantage to FMHA/USDA Rural Housing loans is they are eligible for 100% financing. This makes them the only government-backed loans (outside of the VA program for military veterans) eligible for no-money-down financing. As a result, USDA mortgages make it possible for many lower income borrowers without military experience to buy their own homes. 

USDA loans are designed to benefit average to below-average income individuals. As a result, they often carry better financing terms and lower interest rates than comparable FHA or conventional loan programs. Private mortgage insurance is also not required for these loans.

Conventional Loan Programs. Of course, conventional loans are also an option for Missouri residents who don’t meet the eligibility requirements for traditional first-time homebuyer programs. For example, if you exceed the income or purchase price limits for your area, you may still qualify for affordable financing with a conventional loan. 

As you can see, there are many financing options available to help you purchase your first home in Missouri. If you have questions about which loan program may be right for you as a first-time homebuyer, contact us today for a confidential and no-obligation consultation!