Missouri Home Financing

Missouri Home Financing

Missouri Home Financing options are plentiful with many opportunities for affordable home loans with easy credit qualification and low down payments. Government-insured mortgages and the secondary mortgage markets help make homeownership a reality. When it comes to getting home loans with low down payments, there are a few options available with fairly easy qualifications. FHA Loans for First Time Home Buyers are an option for first-time homebuyers only. FHA ( Federal Housing Administration) is part of HUD ( US Department of Housing and Urban Development. Conventional 97 loans, inquired upon frequently as Fannie Mae Mortgages and Freddie Mac Mortgages, are an option for both first-time home buyers and repeat homeowners that haven’t owned a home within the last three years. Conventional 97 loans offer easier credit score qualifications and low down payments. VA Home Loans offer easier credit qualification with no payment options for Veterans. USDA Home Loans offer rural home loans in both direct and loan guarantees. View Affordable Home Loans and Home Financing Options below.

FHA First Time Home Buyer Loans

FHA First Time Home Buyer Loans offer low down payments, low closing costs, and easier credit qualification. Federal Housing Administration First Time Home Buyer Loans are available through lenders offering FHA Loan Products. The Federal Housing Administration is part of HUD ( US Department of Housing and Urban Development. FHA Loans are government-backed mortgages which the government insures the loan, which in turn allow lenders to offer great incentives.

VA Home Loans

VA Home Loans offer low-interest rates, zero down payment, no primary mortgage insurance, low closing costs, and have easier credit qualification. In addition,  VA home loans are often assumable and can provide benefit for homebuyers looking to buy when interest rates are high or rising. VA Financing can be used more that once, if the loans are used for buying primary residences. The prior loan must be paid off and entitlement restored.

USDA Home Loans

USDA Home Loans are available through the US Department of Agriculture. The USDA Home Loans are available in rural areas. USDA Home loans can be home loan guarantees or direct home loans and oftentimes do not require a down payment. The USDA Loans help to make affordable home loans available in rural areas.

Conventional 97 Loans

Conventional 97 Loans offer low down payments as well and easier credit qualification. The Conventional 97 Loans are available to first-time homebuyers. Additionally, the loans are available to prior homeowners who have not owned a home in the past three years.  Conventional 97 Loans are available through lenders working with Freddie Mac and Fannie Mae. Fannie Mae and Freddie Mac purchase loans in the secondary housing market. The secondary housing market is where lenders and investors sell loans, which allows for the lenders to provide loans but not have to service the loan for the full term example 15, 20, or 30-year mortgages.

Freddie Mac Mortgages

Freddie Mac is a government-sponsored enterprise that helps to expand the secondary housing market in the US.  Lenders meet qualifications and agree to terms to offer Conventional 97 Loans through the Federal Home Loan Mortgage Corporation.  Not all lenders offer Conventional 97 Mortgage Loans.  Homebuyers can ask their lenders if these options are available. Freddie Mac does not offer mortgages but rather guarantees, purchases, and securitizes loans in the secondary housing market from smaller banks, consequently,  enabling lenders to originate more mortgages.

Fannie Mae Mortgages

Fannie Mae also is a government-sponsored enterprise providing liquidy in the home mortgage market and helping to expand homeownership.  Lenders meet qualifications and agree to terms to offer Conventional 97 Mortgage Loans through the Federal National Mortgage Association as well. Loans are not originated through Fannie Mae but rather purchased and guaranteed in the secondary mortgage market. Fannie Mae purchases loans from large commercial and retail banks.

Conventional Home Loan

Conventional Home Loans also offer homebuyers opportunities to finance homes, but oftentimes require a down payment and or private mortgage insurance, additionally, conventional mortgages can have stricter credit qualifying.

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