Are you ready to purchase a home in Missouri? For first time home buyers, entering Missouri's competitive real estate market can be both exciting and daunting, particularly with the hike seen in house prices lately, which has made planning for first time buyers difficult. No worries! Loan Factory will walk you through this challenging process with our extensive knowledge and diverse loan programs. Let's delve into details of first time home buyer loans in Missouri. It’s time to take one step closer to realizing your dream of being a homeowner.
First Time Home Buyer Loans in Missouri
The Missouri Housing Development Commission (MHDC) offers several programs to make owning a home easier and more affordable for first time buyers, repeat homebuyers, and military veterans. Let’s together explore detail these programs:
1. MHDC First Place Loan Program
The MHDC First Place Loan program is designed specifically for those who are purchasing a home for the first time or who haven’t owned a home in the past three years and military veterans. This program features a competitive fixed interest rate, yet frequently below the market value, and can be used with conventional, FHA, VA, or USDA loans.
- Interest Rates: Below-market rates with or without down payment assistance.
- Property Eligibility: Includes single-family homes, one-half of a duplex, semi-detached houses, condominiums, townhomes, and some manufactured homes.
- Price Limits: Up to $481,176 for a single-family home and $588,104 in target areas.
- Income Limits: Depend on where you live and how many people are in your household.
- You don’t necessarily have to be a first-time buyer if you're a military veteran, but you must present a DD Form 214 or a statement of service that proves you have been on active duty within the last 25 years.
2. MHDC Next Step Program
The Next Step Program is designed for both first time homebuyers and repeated homebuyers. It provides affordable mortgages with flexible terms, available with or without down payment assistance, and can be used with Conventional, FHA, VA, and USDA loans.
- Income Limits (depending on each county): Higher than those for the First Place program, which vary by household size.
- Property Eligibility: Most types of homes adhere to purchase price limits.
3. Missouri Down Payment Assistance Programs
- MHDC Down Payment Assistance
MHDC offers down payment assistance to help ease the financial burden of buying a home.
Borrowers qualifying for an MHDC First Place or Next Step mortgage can receive up to 4% of the mortgage amount in a forgivable second mortgage. This second mortgage does not need to be repaid if you remain in the home for 10 years.
*** Mortgage Credit Certificate (MCC)***
An MCC allows first-time homebuyers and veterans to save money by claiming mortgage interest as a federal tax credit, worth up to $2,000 per year, as long as they live in their home.
In addition to Missouri-specific programs, several national loan options are available for first-time homebuyers you can easily find at Loan Factory:
- FHA Home Loans: Suitable for individuals with low credit scores (580+) and little savings; requires only a 3.5% down payment.
- VA Home Loans: Exclusive for military personnel and veterans; no down payment needed.
- USDA Home Loans: No down payment is required for properties in rural areas with a minimum credit score of 640+.
- Good Neighbor Next Door Program: An initiative by HUD that features homes in specific areas with low down payment options as well as 50% off the home value.
→ Read more: How to qualify for a home loan first time buyer
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Why choose Loan Factory?
Explore Loan Factory's modern mortgage servicing platform to enjoy assistance for First Time Homebuyers
Loan Factory uses AI technology to make the mortgage process easier and faster. This technology helps with automating document collection, processing loan applications, and offering personalized customer service. It reduces the need for manual work, improves accuracy, and speeds up the loan approval process.
→ Read more: Easy Steps for Your First Time Home Buyer Loan Application
Central to Loan Factory's technological prowess lies AskMoso, an advanced AI tool crafted to facilitate seamless communication among users and team members within Loan Factory via chat messages, akin to the functionalities of ChatGPT.
AskMoso stands as a user-friendly platform that harnesses the capabilities of ChatGPT, ensuring a more conversational, focus on mortgage and personalized experience for users.
Navigating the world of first time home buyer loans in Missouri can be complex, but Loan Factory is here to make it easier. Our team of experts is ready to help you find the perfect loan to make your homeownership dream come true. Contact us today at (714) 444-9999 or visit our website at www.LoanFactory.com to learn more about your options.
