Buying a home can always be stressful. When you are buying your very first home it can just be overwhelming. So many questions. What to do first? How do you even get started? Which loan is right for you? The state of Missouri helps make this whole process easier by offering incentives and special programs designed especially to aide those purchasing their very first home. Talking to your mortgage specialist about these programs can make your first foray into real estate easier and beneficial to you in the long run.
Missouri Housing Development Commission
 First Place Loan Program
This Missouri ran program allows first time home buyers to make their purchase with zero stress. Once qualified, buyers can chose their new home and then chose their loan type. They can decide to utilize the Non-Cash Assistance program which gives first time buyers a better interest rate than currently being offered or they can go with the Cash Assistance program that allows them to take out the loan with no down payment or closing costs due. Most go with Cash Assistance because it means they have to have no money up front. Either way buyers using this program have the benefit of making their first home loan as beneficial for them as possible. It should be noted that this program is also available to qualifying veterans regardless of first time home buyer status.
 Mortgage Credit Certificate
This is an included incentive for first time buyers from the Missouri Housing Development Commission. As long as the buyer is income qualified they can receive a yearly tax credit to help offset mortgage costs. This certificate enables these first time buyers to use 25% of their yearly mortgage payment amount as a tax credit for every year they live in and own the home.
USDA Rural Development
Single Family Housing Guaranteed Loan Program
While this program is not intended especially for first time buyers, it is a great opportunity for them. This loan option allows qualified buyers with low to moderate income to purchase a home in specified rural areas, which qualifies nearly every corner of Missouri, excluding the three or four major cities. The major benefits to this loan program are that it is easier to qualify for and there is zero down payment. Both of these make it ideal for new buyers. The overall goal of the program is to encourage homeownership in rural areas and it is succeeding very well.
Federal Housing Administration
 Home Purchase Loan
This loan is also not specific to the first time buyer, but a perfect option for them in it convenience and value. These loans are insured by the federal government which gives lenders more freedom in qualifying applicants. They are, therefore, much easier to obtain than other home loans with lower income and credit requirements. This loan also allows buyers to use a smaller amount as a down payment. As little as 3.5% can be used as the down payment and they now offer a possible grant to cover even that. Qualifying applicants can receive up to 5% from the Federal Housing Administration to cover required down payments. These loans also have the benefit of competitive interest rates. You need not worry that your interest will be unnecessarily high just because you are using a different loan type.
Veterans Association
Purchase Loans
While this loan is specific to veterans and service member, it can be a perfect choice for first time buyers with a military background. If you fall into this category then you may want to see if you qualify. The requirements are more relaxed than with traditional mortgage loans and they will do 100% financing which means a zero dollar down payment. On top of this the interest rates are competitive, giving you the best value for the long term. First time buyers who qualify for this loan will get a loan that fits their needs and helps them in the long run with several refinance options for down the road in case of needed funds for home repairs or improved interest rates.
Native American Direct Loan
This loan allows qualifying Native Americans with a military background to finance a new home or construction project on Federal trust land. It comes with the same benefits and perks as a regular Veterans Association loan, but with specificity to the needs of one targeted group. It is also a good option for first time buyer because of it special benefits.
In Missouri, one can find a plethora of beautiful homes on a budget. The state in general has a fantastic cost of living that makes for a great day to day life. The countryside is beautiful and the neighbors are kind. You will love living here regardless, but with the addition of loan programs like these it just makes sense. When you combine all of the elements to living in the Sho-Me State, you just can’t go wrong. Why not live in a home you can be proud of near neighbors you love surrounded by land that takes your breath away? You’ll know your first home purchase was a smart one. You ended up with a loan that catered to your needs and made this dream come true at the best value for you.
2 Point Highlight
The state of Missouri helps make this whole process easier by offering incentives and special programs designed especially to aide those purchasing their very first home.
Talking to your mortgage specialist about these programs can make your first foray into real estate easier and beneficial to you in the long run.
