St. Louis Mortgage Help

Zero to Low Down Payment Mortgages - St. Louis MO

January 24th, 2017 11:30 AM by Bob Rutledge

Zero Down Payment Mortgage Options in the St. Louis MO area

Low Down Payment Options in the St. Louis MO area

There are many low to zero down payment options available in the St. Louis MO area and throughout the entire State of Missouri. These options are available to first time home buyers and any home buyer through mortgage programs or down payment assistance help.

Every mortgage program has a low down payment option, the lowest down payment requirement comes with both the VA mortgage and the USDA mortgage program. Both the VA and USDA mortgage are zero down payment mortgage programs.

Throughout the State of Missouri there are geographical areas that are eligible for the USDA zero down payment home loan. In the St. Louis MO area there are areas in Jefferson County and St. Charles County eligible for zero down mortgages.

Are you a veteran of the United States Armed Services? If you are a veteran then one of the VA benefits available to you is the VA zero down payment home loan. I consider the VA mortgage the #1 best mortgage available!

Both Fannie Mae and Freddie Mac, these are also called the conventional mortgages, have multiple low down payment programs. The lowest down payment with either program is 3 percent, but there both Fannie and Freddie have two different 3% down payment programs. There is what I will call the regular conventional 3% down payment home loans, that go by all the regular conventional underwriting guidelines.

Then there is the Fannie Mae Home Ready and the Freddie Mac Home Possible 3% down payment mortgage program. This program is designed to help more people become home buyers, there are more flexible underwriting guidelines to help, better interest rates than the regular conventional mortgage, better mortgage insurance rates, and a lot more to help you become a home buyer. I have been using this program a lot more lately since it was first rolled out.

The FHA Mortgage Program, is the best known of the low down payment mortgage programs, FHA has a minimum down payment requirement of 3.5% as long as your credit score is above 580. If the qualifying down payment is below 580 there is a required 10% down payment.

The FHA mortgage is known for helping many people with low to no credit scores become home buyers. The underwriting guidelines for FHA mortgages are the most relaxed in the industry and is sometimes referred to as a first time home buyer mortgage program but it is not just for first time home buyers.

The lender I work for, USA Mortgage, has come out with our own 1% down payment program that has been helping a lot of new home buyers in the St. Louis MO area. The USA Mortgage 1% down payment program works hand in hand with the Fannie Mae HomeReady program to make for a very flexible low down payment option.

If you can't utilize the VA or USDA mortgage programs to get a zero down payment, there are ways to get your down payment paid for you through down payment assistance programs.

BTW, down payment assistance is not just for first time home buyers! There are down payment assistance programs that serve only first time home buyers but the State of Missouri, MHDC, and the Next Step down payment assistance program is not only for first time home buyers.

The MHDC programs, First Step and Next Step, will prove up to a 4% assistance to be applied toward your down payment, closing costs, or both.

There are also many local down payment assistance programs in various counties and/or cities throughout the St. Louis area that will provide down payment help from $3,000 to $5,000 depending on where you purchase a new home. St. Louis City, St. Louis County, Florissant, Jefferson County, many cities in St. Charles County, and unincorporated St. Charles County provide a down payment assistance program that will cover some if not all of your down payment.

Confused? You don't have to know it all, that is why you hire a mortgage specialist like myself to help you. If you want to know or learn more you can find a lot of detailed information within my website at www.bobrutledge.com or you call me at 314-628-2218. Please feel free to ask me all your questions, I answer questions every day.


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