Missouri Home Loan Resources

The Missouri Torch | Missouri Home Loan Resources

The Missouri Torch has partnered with a local mortgage broker and loan consultant firm, Liberty Lending, to provide readers with the latest home loan resources. Whether you’re looking for a St. Louis mortgage or a mortgage in Kansas City, Liberty Lending has worked with The Missouri Torch to provide readers with useful resources to alleviate the stress of the home buying process. In this section, you’ll find information regarding three types of loans, eligibility for these loans, requirements for approval, and the pros and cons of each.

Three Missouri Home Loans to Consider

Though there are far more than just three loans available to home buyers in Missouri, three common loans that Missourians should research are Conventional Home Loans, USDA Loans, and VA/Military Loans. You’ll find that the only one of these three loans that are available to almost all applicants is the conventional home loan. Both USDA and VA/Military Home Loans are restricted to select areas and applicants.

However, it’s important to consider all three options when buying a home. Many applicants will be surprised to find out that they might be eligible for USDA Loans or Military Loans. Below, we provide an overview of each loan.

Conventional, USDA, and VA Home Loans

Conventional Home Loans

  • Conventional Home Loans are simple home loans or mortgages available to all qualified applicants. These home loans are not restricted to a certain area, property, or applicant. Most home buyers will usually take out a conventional home loan. Out of the three loans we’re detailing, conventional home loans are by far the least borrower-friendly. This is because conventional home loans are issued directly by banks or other financial institutions and are not backed by federal homeownership programs.

USDA Home Loans

  • USDA Home Loans are federal home loans issued by the United States Department of Agriculture. The USDA offers these loans to encourage home buyers to consider properties outside of large urban and suburban areas. All USDA loans are restricted to specific rural areas. Additionally, USDA home loans typically target lower income individuals and families. USDA home loans are borrower-friendly and backed by the USDA, a federal agency.

VA/Military Home Loans

  • VA or Military Home Loans are offered by the Department of Veterans Affairs to recognize the brave sacrifices made by those who are serving, have severed, are ready to serve, and their families. These loans are restricted to certain individuals. However, VA home loans are very borrower-friendly and are not restricted to a certain area. All VA home loans can only be applied towards a primary property.

Conventional Home Loan Requirements

  • Available to all Qualified Applicants
  • Not restricted to a specific region or area
  • Can be applied towards primary, secondary, and investment properties
  • Down payment varies by financial institution
  • Fees vary by financial institution
  • Insurance required and is typically 20% of the loan amount
  • FICO Score usually 620 or higher

USDA Home Loan Requirements

  • Targets lower to lower-middle income applicants
  • Restricted to USDA certified rural areas or regions
  • Primary properties only
  • No down payment
  • Fees are usually $100 per 100K borrowed plus monthly premium
  • Insurance required, can be financed into mortgage
  • FICO Score usually 640 or higher

VA/Military Loan Requirements

  • Available to active duty military, military veterans, reservists, and their families
  • No restricted to a specific region or area
  • Primary properties only
  • No down payment
  • Fees payable to the VA, vary by amount, applicant, loan type
  • Insurance not required
  • FICO Score usually 620 or higher