News on mortgage rates has shown that FHA mortgage insurance premiums have been on the rise in the past couple of years. The cost of monthly PMI on FHA insured mortgage loan services has basically doubled in the past 24 months. The biggest draw with the FHA mortgage for home loans in Missouri is the low down payment at 3.5% of sales price. Typically, Conventional financing options have required a minimum of 5% down making this a less attractive option among mortgage loan services.

We offer a 3% down Conventional financing option. Utilizing this type of financing allows buyers a lower down payment than FHA loans, but more importantly mortgage insurance (PMI) options that are significantly more cost effective than their FHA counterpart.

The Conventional 3% down purchase program allows for Seller to contribute necessary amounts to cover Buyer's closing costs making this a true 3% down program. Our preferred lenders even offer a "PMI buyout" option that can result in a 3% down loan with $0 monthly MI cost with PMI paid by the seller. Credit requirements are a bit tighter on this program compared to FHA loans but if you qualify for this type of financing, you can save 0.5% on your down payment, but more importantly enjoy a much lower payment each and every month!