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USDA

USDA is also known as rural development in Missouri. This is a loan through the Department of Agriculture which is ideal for communities under 20,000 in population. It has many advantages over the standard loan. This loan requires no money down, the seller can pay up to 6% of the buyers closing costs (which can include the first years homeowner’s insurance). The state of Missouri does have to approve the property, requires an appraisal (FHA).

There is an upfront 1% MIP that can be financed into the loan this was lowered from 2.75% to 1% in 2016. At the same time the monthly MI was reduced from .5% to .35%. This is an extra cost of around $30 a month. One other negative features monthly MI goes for the life of the loan.

This loan is based on the income of everybody in the property overage 18. There is a On the gross amount the family can make to qualify. Normally this is not an issue, the family of 4 making over 78,000.

If your family is over 4 loan can go up to $103,000.

This and VA are the only no money down loans.