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.
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