Many mortgage programs that allowed you to buy a new home with zero down payments have recently exited the real estate market, but in St. Louis with the help of a FHA mortgage you have many options available to you to buy your next new home without a down payment.
In fact, with an FHA mortgage it is highly possible to buy a new home without a down payment as well as not having to use any of your won money for closing costs.
The FHA mortgage program now requires that any home buyer have at least 3.500% of the sale price of their new home as a down payment. Besides the down payment, with any home purchase there are also closing costs involved in purchasing a new home.
Closing costs generally are, lender fees, title fees, pre-paid items such as inspections, escrow items, per diem interest, home owners insurance, these closing costs can range from 2.000% to 4.000% of the sales price in addition to the required down payment.
If you are a St. Louis first time home buyer it is very typical not to have the funds to purchase your very first home. It is for this reason that I specialize in helping first time home buyers get into their first home with little to no money out of pocket. You may ask yourself why you would want to buy a new home with very little money invested. The truth is that putting down a minimal down payment seldom significantly changes your monthly obligation.
I would rather you save the money to keep from having to utilize other credit sources to purchase the items needed to live in your new home. If you place those needed items on a credit card you now have a new monthly payment at an interest rate much higher then your mortgage interest rate, adding to your monthly expenses.
Have Money Given to You!
In the St. Louis and St. Charles area there are several entities that are willing to provide grant money to home buyers, there are municipalities such as Florissant, St. Charles, O’Fallon, and Wentzville who will provide down payment assistance, also unincorporated St. Louis and St. Charles counties have similar programs. The amount provided varies but usually will cover your down payment and with some your closing costs as well.
The state of Missouri also has a down payment grant program provided through the Missouri Housing Development Commission or MHDC. The newest MHDC program will advance all or a portion of the $8,000 tax credit that is available to first time home buyers. MHDC has other down payment assistance programs that will provide you with the funds for a minimum FHA down payment and/or a low interest rate.
Speak with a MHDC lender to learn more.
22 Ways Fund Your FHA Mortgage
The FHA underwriting manual lists 22 different methods for you to furnish the money necessary to get you into your new home. The most simple is to have the money already in your bank account but, if you are like most new home buyers those funds are either too low or you would prefer to keep them in the bank. Some of the other listed methods that will provide you with the down payment are:
These are just a few of the ways to fund the down payment or closing costs for your new home, if you would like to learn more about all 22 ways to get the money to buy your new home please feel free to contact me.
Your Uncle Sam
If you are a first time home buyer you can buy a new home up to December 1st of 2009 and receive an $8,000.00 tax credit from your Uncle Sam. This is money that you can receive this year from your 2008 tax filings, you do not have to wait until next year. Depending on your tax situation this is usually enough money to cover the minimum down payment plus your closing costs. There are some rules that apply:
There are several rules that need to be met, I suggest you speak with a mortgage professional to get pre-approved and discuss whether you qualify for the $8,000.00 tax credit. I have been very successful in helping many first time home buyers utilize this tax credit to get them into their new home, I would be more than happy to do the same for you.
In fact don’t use all the tax credit to purchase a new home, keep some of it for yourself! I have helped many of these same first time home buyers to negotiate to have the seller pay for all the closing costs involved in the home purchase. Uncle Sam pays your down payment, the sellers pay your closing costs, you get extra money from the tax credit and you are in your next new home with zero out of pocket expense.
Nearly No Down Payment
Buying a foreclosures for your first home is a very popular option, buying a FHA forclosure may allow you to purchase that new home for only an $100 down payment. Many of these FHA owned homes have sales incentives that provides extra cash back to you the home buyer, and in many situations you can negotiate your closing costs to be paid as well.
Recently, I had a couple buy a FHA/HUD home in Wentzville for $158,000.00, this was a 5 year old home, 2 story, 2485 square feet, 4 bedroon, 2.5 baths, in near perfect condition for only $100.00 down, had all their closing costs paid, and received $1500.00 back at closing. WOW!
Other Mortgage Options
There are other mortgage programs to help you get into a new home with zero down payment, such as VA mortgages for those who served our country or Rural Development that will allow you to buy a home in St. Charles County, Jefferson County, Franklin County and most other surrounding counties for zerro down payment, low interest rates and no mortgage insurance.
Don’t Delay Call Today
If you are looking to buy a new home and you have little to no money for a down payment and/or closing costs you need to speak with a mortgage professional like myself that specializes in your situation. Give me a call today for a no cost/no obligation pre-qualification. Learn everything you need to get your next new home with as little out of pocket as possible. Ask me about our Lowest Cost Guarantee and receive the insurance you need to shop today!
Bob Rutledge
Midwest Mortage Capital
314-744-77943
*This is not an offer to lend. 
Obama Refinance Plan For San Jose Homeowners AnnouncedHome Affordable Refinance Program Update Harp 2 Bay Area San Francisco California March 2012 Guidelines for Purchasing a 3 to 4 Unit Property with FHA Financing in Alameda, CA8 Year Fixed to 30 Year Fixed. You Can Choose Your Loan Term In San Jose
