Frequently Asked Questions
How much down payment do I need to buy my first home in St. Louis?
Many first-time buyers can purchase a home with as little as 3% down using conventional loans or 3.5% down with FHA financing. Down payment assistance programs in Missouri and Illinois can help cover part of this amount. VA loans allow for a 0% down payment for military veterans and active-duty buyers and USDA loan allow for 0% down for rural properties.
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What credit score do I need to qualify for a mortgage?
Most loan programs require a minimum credit score of 620 for conventional financing or 580 for FHA. However, higher scores can qualify you for better interest rates and FHA can allow for a score down to 500 if you have a higher down payment.
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Are there down payment assistance programs in Missouri?
Yes. Missouri offers programs such as MHDC down payment assistance, which can help with part or all of your required down payment and closing costs.
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Are there down payment assistance programs in Illinois?
Yes. Illinois offers programs such as IHDA down payment assistance, which can help with part or all of your required down payment and closing costs.
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How do I get pre-approved for a mortgage?
Pre-approval starts with an online application and supporting documents like pay stubs, bank statements, and W2s. This gives you a clear budget before shopping for homes.
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What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate based on basic information. Pre-approval is a lender-verified review of your income, credit, and assets — and is stronger when making an offer.
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When should I refinance my mortgage?
You might consider refinancing if current rates are at least 0.5% lower than your current rate, if you want to shorten your loan term, or if you need to tap into home equity.
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Does refinancing cost money?
Yes, refinancing comes with some closing costs. They can potentially be covered by the lender, but that may affect your rate. Sometimes these costs can be rolled into the new loan. Speak with your mortgage advisor to see your refinance options.
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Will refinancing hurt my credit score?
Applying for a refinance may cause a small, temporary dip in your score, but paying your new loan on time can help it recover quickly.
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Can I refinance if my home’s value has gone up?
Yes. Higher home values can give you more equity to work with, which can help you drop PMI or take cash out for renovations or other expenses, and may also help get you a lower rate.
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What are property taxes like in St. Louis County?
Property taxes vary by municipality, but St. Louis County has an average effective property tax rate of about 1%. Speak with your loan officer to get an idea of your property taxes and total estimated monthly payments for your scenario.
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Do first-time buyers in Missouri have to pay private mortgage insurance (PMI)?
If you put less than 20% down, most loan types require PMI, but it can often be removed once you have 20% equity.