First-Time Home Buyer Programs

The requirements for acquiring a mortgage loan depend on the loan type.

For a conventional loan, among the qualifications are:

• A minimum down payment of 3%. Private mortgage insurance (PMI) will be required for down payments below 20%.
• A maximum debt-to-income ratio (DTI) of 45%.
• Required documents including;
  • Clear copy of your driver’s license, passport or state ID Card
  • Pay stubs covering the most recent 30 day pay period
  • Complete bank statements for the past two months, all pages
  • All W2’s for the last two years

FHA loan qualifications include:

• A down payment amount that is dependent on the borrower's credit score, with the minimum down payment being 3.5%.
• The front-end ratio (mortgage payment plus homeowners association fees, property taxes, mortgage insurance, home insurance) will need to be less than 31% of your gross monthly income.
• Monthly debts (credit card payments, car payment, student loans, etc.) will need to be less than 43% of gross monthly income.
• Documented, steady income as well as employment history.
• Home will be used as primary residence.
• The property must be appraised by a FHA-approved appraiser and needs to meet certain standards.

NASB offers a number of loans and programs that helps getting a loan for a first-time buyer easy and affordable.

The different loans available include:

• FHA loans with credit requirements not as stringent as conventional loans
• VA loans for veterans and their families with no origination or application fee in closing costs¹
• Bank Statement loans for self-employed borrowers who would rather show bank statements than tax returns
• FLEX loans for borrowers with unique credit situations

NASB mortgage programs that can help reduce stress during the home purchase process:

• Home Buying Advantage underwrites your loan up front, so that when you're ready to go, your loan is nearly complete
• Good Neighbor Program helps promote home ownership in the under-served areas of the Kansas City community²
• Missouri Housing Development Commission Program helps Missouri residents take advantage of a number of mortgage assistance programs available through the MHDC

¹NASB does not charge lender fees on VA loans; however, fees payable to third party service providers are still required.
²Specific geographic and / or income level restrictions apply. Eligibility for the discount and features of the Good Neighbor Programs are separate from loan approval, which is still required.

This again depends on the type of loan you get. For an FHA loan, you will need a minimum down payment of 3.5% of the purchase price, plus you should plan on another 2%-2.5% of the purchase price for closing costs. The more more money you can put down, the better options you will have, including not having to pay mortgage insurance premiums. You should also account for after closing costs, including any moving or repair costs, and having the first couple of months' payments on hand. Here's a calculator that can help you determine how much you should put down for a new home, and another one to help you determine what your closing costs might be.

Click here for a calculator to determine your monthly mortgage payment for a given purchase price, down payment, interest rate, and loan term.

The maximum loan amount you can borrow depends on your credit score, your debt-to-income ratio (DIT) and profile in the underwriting process. The lender basically wants to have an understanding of how much you will be able to repay, taking into consideration all risk factors. Here's a tool to help you calculate how much you can borrow.

Your interest rate will change  if you have a loan with an adjustable rate. The interest rate on a fixed-rate loan does not adjust. 

Homeowner's insurance is very important, it covers the house’s structure and all its contents should a destructive event occur, such as a fire or storm. You want to make sure and get quotes from multiple companies, look at their reviews and compare pricing. Companies like Credible Insurance let you compare up to three competitive quotes. Here's a blog that can tell you more.

An escrow account, which is also sometimes called an impound account, is setup by the mortgage lender to pay certain property-related expenses. An escrow account can be helpful in paying these expenses because money is set aside every month instead of having to pay a big bill a couple times a year. Your mortgage servicer will manage the escrow account and pay these bills on your behalf.  Escrow accounts may be required by the lender and are also, in some cases, required by law. Here's a blog that tells more about escrow accounts.

A home appraisal is an opinion of a home's value done by an unbiased professional. These are almost always used for home purchases and sales, as well as refinances. They are done to ensure the lender that the homeowner is not over-borrowing for a property, preventing a possible foreclosure in the future.

Private  mortgage insurance (PMI) is typically required on a conventional loan when there is less than a  20% down payment.

No. An appraisal determines a home's fair market value. An inspection is an examination of your home's physical structure and systems.

A  gift may typically be acceptable from: a borrower relative, borrower's employer or labor union, a close friend, a charitable organization, a governmental agency or public entity that has a program providing home ownership assistance to low and moderate families or first-time home buyers. Specific requirements regarding gifts can vary by loan type and program. Talk to your lender for details. 

Click here for a calculator that determines your mortgage closing costs for a given set of loan terms. The calculator lumps settlement charges into two categories: origination charges and other settlement services.

A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.