Down Payment Assistance
and Help in
St. Charles and St. Louis Mo
Down payment assistance and help for new home buyers in the St. Louis and St. Charles Mo area is within your reach. We have all heard the news spewing from the media that getting a mortgage to purchase a new home is difficult plus lenders are requiring huge down payments too. That message is wrong!
True it isn't as easy to qualify for new home as it was before 2008 but down payment requirements have not changed. There are currently 4 heavily utilized home loan programs that allow for little to no down payment. Buying a new home doesn't have to be a huge financial burden where you have to deplete your entire savings account. With interest rates so low right now it has never made more sense to keep your money in your pocket when you finance your next new home.
VA and USDA are two mortgage programs that allow for 100% financing, meaning no down payment. VA mortgages are reserved for those qualified veterans of the United States Armed Servicecs, if you would like to know more about VA Home Loans follow this link. USDA, sometimes referred to as Rural Development, has specific income and geographic restrictions, to learn more about USDA Rural Development click the link.
The two remaining loan programs allow very low down payments, the first is FHA which has very easy qualification guidelines and a low minimum down payment requirement of 3.5 percent of the sales price.. Then there is conventional, FannieMae and FreddieMac, the minimum down payment requirement for conventional financing is only 5 percent of the sales price.
If you are a new home buyer in and around the St. Charles and St. Louis MO area and are looking for down payment assistance or simply want to keep more of your money in your pocket than I can help. There are many different and distinct ways to fund the costs of your new home, I know of over two dozen 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. In St. Charles one down payment assistance program will provide up to $5,000 in funds to help you buy a new home.
2) Lender Closing Cost Assistance: I help many home buyers through lender credits that pay for a portion to all of your Closing Costs. This leaves you with the down payment, but I can show you how to secure these funds as well.
3) Seller Concessions: did you know that most home loan programs will allow the seller to pay from 3 to 6 percent of the sales price for your Closing Costs? This again leaves you with the down payment, but does keep your money in your pocket and if I can show other means to secure your down payment it may be that you purchase a new home with little to nothing out of pocket.
4) 401k or other type of retirement plans: this is a popular method of saving for your down payment. You can either borrow or withdrawn from many retirement plans for the purchase of a new home. Please check with your retirement plan administrator for the rules and restrictions.
5) Gift Funds: another very popular method to secure down payment help. Your relatives, employer, church, labor union and several other sources can provide you with a gift of funds to pay for your down payment and/or closing costs.
Here are a few more, sweat equity, family member loan, collateralized loan, sale of personal property, and rent credit. As I mentioned I know of more than 2 dozen approved methods of securing your down payment and/or closing costs. Does your mortgage loan officer?
If you are currently looking to buy a new home or will be in the future here is your homework assignment, yes the pun was intended. If you are wanting to get into your new home and keep as much of your money in your pocket as possible than find a mortgage lender that can explain the dozens of ways to make this happen. With today's interest rates being so low it is in your favor to save your money and use it for the things you will need and want when you move into your next new home.