How much down payment do I need for an FHA loan in Missouri?

3.5% of the purchase price with a 580+ credit score. On a $250,000 home that's $8,750. Down payment can come from your savings, a gift from family, or a Missouri Housing Development Commission (MHDC) down payment assistance program.

Are FHA loans only for first-time buyers?

No. FHA loans are available to any owner-occupant who meets the credit, income, and property requirements. They're popular with first-time buyers because of the low down payment, but repeat buyers use them too.

Can I refinance an FHA loan later?

Yes. Once you have ~20% equity and a stronger credit profile, refinancing into a Conventional loan eliminates mortgage insurance. The FHA Streamline refinance is another option that lowers your rate without a new appraisal.

What are FHA loan limits in Missouri for 2024?

The standard 2024 FHA limit for a single-family home in most Missouri counties is $498,257. Select counties in the St. Louis and Kansas City metro areas have higher limits — Bryan can confirm your specific county in 60 seconds.

Loan Program · Missouri

FHA Loans in Missouri

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Quick Answer

In one paragraph

An FHA loan is a government-insured mortgage that lets Missouri buyers purchase a home with as little as 3.5% down and a 580 credit score. Loan limits vary by county (most of Missouri falls under the standard FHA limit). Mortgage insurance is required, but rates are typically competitive with — or better than — conventional financing for borrowers under a 680 FICO.

Key Takeaways

What to remember

3.5% down payment with 580+ FICO; 10% down possible with 500–579 FICO.
More forgiving on past credit events (bankruptcy, foreclosure, collections) than Conventional.
Property must meet FHA minimum condition standards — a quick walkthrough check before you offer can save the deal.
Mortgage insurance (MIP) is required for most of the loan; refinancing into Conventional later is a common exit strategy.
Missouri-specific: most counties use the standard FHA limit; St. Louis metro and Kansas City metro counties may qualify for higher limits.

Who this is for

Is this you?

First-time Missouri buyers with limited savings
Borrowers with credit scores between 580 and 680
Buyers recovering from a past bankruptcy or foreclosure (after the waiting period)
Higher debt-to-income borrowers who don't qualify Conventional
Anyone who'd rather keep cash reserves than put 20% down

Requirements & Guidelines

The numbers that matter

Minimum credit score: 580 (3.5% down) or 500 (10% down)
Minimum down payment: 3.5%
Max DTI: Up to 56.9% with compensating factors
Mortgage insurance: Upfront MIP 1.75% + annual MIP
Property type: Owner-occupied 1–4 unit, FHA-approved condos
Loan limits (2024): $498,257 standard / higher in select MO counties

Bryan's Expert Insight

What experience teaches

Most FHA denials I see in Missouri aren't credit-related — they're property condition issues. Peeling paint on a pre-1978 home, exposed wiring, or a soft roof can kill an FHA appraisal. Before you write an offer, send me the listing photos. I'll flag FHA red flags in 10 minutes so you don't lose earnest money on a property the appraiser will reject.

— Bryan Jones, Senior Mortgage Broker · 14+ years · 1,000+ closed loans

Frequently Asked

Common questions, direct answers

580 to qualify for 3.5% down, or 500–579 with 10% down. Some wholesale lenders Bryan works with go to 580 with manual underwriting even when bank overlays say 620.

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