March 31st, 2013 3:36 PM by Bob Rutledge
Down Payment Assistance and Help in St. Louis and St. Charles MO
We have all heard it said in the media that buying a new home can be difficult and that lenders are requiring large down payments from all their borrowers. The need for a large down payment has never been true, there are 4 highly utilized mortgage programs that allow for zero down payment to 5% down payment.
If you are in or around the St. Louis and St.Charles MO area I can help you keep more of your money in your pocket when you purchase your next new home.
There are two mortgage programs available that still allow for 100% financing or zero down payment, VA and USDA. VA loans are provide to qualified veterans, to learn more about VA Home Loans follow the link. USDA has specific income and geographic restrictions follow the link to learn more about USDA Rural Development Home Loans.
FHA mortgages require a minimum 3.5% down payment and Conventional Financing, FannieMae and FreddieMac, require at least a 5% down payment. There are many ways for you to be able to furnish the funds to close your home loan, in fact I know of over a 2 DOZENS WAYS TO FUND YOUR DOWN PAYMENT AND/OR CLOSING COSTS.
1) Down Payment Assistance Programs; there are local and statewide down payment assistance programs available to qualified FIRST TIME HOME BUYERS.
2) Lender Closing Cost Assistance: I help many borrowers through lender credits that will pay for a portion or all of your closings costs. This leaves you with the down payment.
3) Seller Concession: similar to lender credits, most loan programs will allow the seller to pay for the home buyers closing costs any where from 3% to 6% of the sales price. Again leaving you with the down payment.
4) Earnest Money Check: These funds used to secure your sales contract can be used at closing for either your Down Payment or Closing Costs.
5) Gift Funds: A close relative, your employer, labor union, and a couple other sources can provide you with a gift of the funds required for your down payment and/or closing costs. This can get tricky so make sure your lender is well versed in this process.
6) Sweat Equity, complicated but today very worthwhile. As the home buyer the labor and material you put into a home before the final purchase can be used toward either down payment or closing costs.
7) Family Member Loan
8) Collateralized Loan
9) Sale of Personal Property
10) 401k or other time of Retirement Plan
There are many more resources that I are available to you as a new home buyer to provide the funds to purchase your next new home. I have not fully explained all the methods nor have I listed them all. That is your homework assignment (pun intended) to find the Mortgage Lending Professional that can best help you secure your new home in the best possible situation for you.
I would welcome the opportunity to help you secure the financing of your next new home as well as provide you all the ways to keep your money in your pocket. There are methods to buying a new home in St. Louis and St. Charles MO with little to no money out of pocket.