Mortgage in Missouri
Missouri is iconic for many reasons. St. Louis contributed a unique style of BBQ to the nation. It's also the home of Budweiser, one of the most recognizable beer brands in the world. Indeed, Missouri has had a profound impact on American history. It's also quite affordable. Indeed, Missouri has the ninth least expensive housing market - more costly than Indiana and cheaper than Louisiana. If you're looking to move to Missouri, use our Missouri mortgage calculator to see how much you'll pay for a home or condo.
Missouri Mortgage Calculator: Three Options
There are three mortgage choices that most people in Missouri will have.
- Missouri conventional mortgage: Given that Missouri has a relatively low cost of living, most current and prospective residents can take advantage of a conforming conventional mortgage. These loans require a minimum credit score of 620, a maximum debt-to-income ratio of 50%, and a minimum of 3% down. Please bear in mind that you will pay private mortgage insurance if you put less than 20% down.
- Missouri FHA mortgage: FHA loans tend to work out well for Missouri borrowers who have less-than-ideal credit. These loans require a minimum credit score of 500 with 10% down or 580 with 3.5% down. These mortgages always require PMI, but you can refinance later to get out of paying that insurance cost.
- Missouri VA mortgage: For those who have served in the military, a VA mortgage is possible. With as little as 0% down and no private mortgage insurance, these loans are often the best choice for anyone who qualifies. The only potential downside is that borrowers usually need a credit score of 660 or above.
Prospective Missouri homeowners will likely need to come up with a down payment. If you don't have the funds on hand, some first-time homebuyer programs can help!
First-Time Homebuyers in Missouri
The Missouri Housing Development Commission offers two direct assistance programs for first-time homebuyers within the state.
Missouri's First Place Loan program has two options. The non-cash assistance option provides a lower interest rate but does not give any down payment assistance. By contrast, the cash option has a slightly higher interest rate but does assist with down payment and closing costs. For borrowers who pick the cash option, the assistance is 4% of the loan amount as a second mortgage, entirely forgivable after ten years.
Eligibility Criteria: Home price and income limitations apply with this program.
Borrowers who receive the mortgage credit certificate can deduct 25% of the mortgage they pay each tax year up to a maximum of $2,000 per year. This program provides a non-refundable tax credit, so it is a dollar-for-dollar reduction for any tax amounts that you owe.
Eligibility Criteria: Borrowers are subject to home price and income limitations. The home must become the borrower's primary residence to get this certificate.
Missouri Mortgage Calculator: You Could Save Money!
Known for its BBQ and beer, Missouri is also a relatively affordable state in which to live. You'll find that your dollar stretches a lot further in Missouri than in many of the other areas within the country.
If you're interested in making a move, use our Missouri mortgage calculator to see how much you'll pay!