St Louis Downpayment Assistance

Thinking About Purchasing a Home In the Following Areas?
Principal Realty Group can help you learn if you qualify for free downpayment and closing cost assistance programs.  To get more information please call (314) 952-8288 

Unincorporated St. Charles County  •  City Of St. Charles  •  City Of St. Peters  •  City Of O’Fallon  •  City Of Wentzville  •  Saint Louis County  •  Saint Louis City

Luckily the St. Louis and surrounding areas offer some of the best downpayment and closing cost assistance programs in the United States.  In most cases these programs are available for most first time homebuyers, including those making over $50,000.  Some programs are offered to any home purchaser, not just first time buyers.  This chart shows an example of some of the programs that may be available.

USDA Funds (St. Charles, Warren, Lincoln, Franklin and Jefferson counties):

  NO DOWN PAYMENT REQUIRED
  NO MORTGAGE INSURANCE
  LOW 30 YEAR FIXED INTEREST RATE

DAN MCKEE with USA Mortgage is an approved lender under the Single Family Housing Guaranteed Loan program.
- for information you may e-mail Dan at dmckee@usa-mortgage.com

Eligibility:  Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

 
DAN MCKEE with USA Mortgage is an approved lender under the Single Family Housing Guaranteed Loan program.

 
Any State housing agency; Lenders approved by: HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities; the U.S. Veterans Administration as a qualified mortgagee; Fannie Mae for participation in family mortgage loans; Freddie Mac for participation in family mortgage loans; Any FCS (Farm Credit System) institution with direct lending authority; Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

 
Terms: Loans are for 30 years. The promissory note interest rate is set by the lender. There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

MHDC Funds (Missouri Housing Development Commission):

The State of Missouri has a program call First Place Loans, also known as MHDC Funds.  These funds are offered a few times each year to first time homebuyers, veterans, and those buying in a disaster area.  MHDC will offer up to 3% of the purchase price of a home in a forgivable second loan.  You must use a FHA, VA, USDA Rural, or MyCommunity FNMA loan to purchase the home.  However, this means especially with a FHA loan, that you might be able to obtain a 100% loan.  The maximum value of the home you can buy in most areas is $237,000, there are some areas of Missouri that you can buy up to $289,700.  Depending on how many people that will be living in the home with you, your gross family income can be as high as $65,550 and still qualify!

These funds go very quickly though.  So it’s important to keep updated with your Principal Real Estate agent to find out when they’ll be ready.

Downpayment Savings Program:

Through what’s called an Individual Development Account, a future homeowner can begin to save money for a downpayment or closing costs in the St. Louis area and receive matching grant money either $1 for every $1 you save or in some special cases $2 to $1 you save from Beyond Housing and their member organizations.  This means if you save $1500 you would receive $4500 towards your downpayment or closing costs.  To start saving and receive matching funds, you must attend two days of home ownership and credit classes.