There are various methods and sources of funding used to purchase, refinance, or invest in residential properties. I work with a select number of highly qualified, client-focused mortgage experts in mid-Missouri to whom I can refer you. Just give me a call to discuss your individual circumstances and I'd be happy to put you in touch with them.

The choice of financing method will depend on various factors, including the buyer's financial situation, creditworthiness, the property type, and the current state of the real estate market. It's essential to carefully consider your options and consult with financial experts to make the decision that's right for you.

Here is a basic primer on residential financing:

  • Mortgage Loans. Mortgage loans are the most common way to finance the purchase of a home. They involve borrowing money from a lender (usually a bank or mortgage company) to buy the property, and the property itself serves as collateral for the loan. There are various types of mortgage loans, including fixed-rate and adjustable-rate mortgages (ARMs).
  • Home Equity Loans and Lines of Credit. If you already own a home, you can tap into the equity you've built up over time. Home equity loans and lines of credit allow you to borrow against the value of your home for purposes like home improvements, debt consolidation, or other expenses. These are sometimes referred to as second mortgages.
  • FHA Loans. The Federal Housing Administration (FHA) provides mortgage insurance for loans made by FHA-approved lenders. These loans are often easier to qualify for and require lower down payments than conventional loans, making them a popular choice for first-time homebuyers.
  • USDA Loans. The U.S. Department of Agriculture (USDA) offers loans for the purchase of rural properties or homes located in more rural areas, to eligible individuals and families. These loans often require no down payment. A large number of central Missouri communities qualify for USDA financing.
  • Private Financing. In some cases, buyers may secure financing directly from the property seller. This can take the form of seller financing, where the seller acts as the lender, or through a lease-purchase agreement.
  • Construction Loans. If you're building a custom home, you might need a construction loan to cover the cost of building the property. Once the construction is complete, the loan is typically converted into a traditional mortgage.
  • Personal Savings. Some people choose to pay for residential properties using personal savings or investments, avoiding the need for a mortgage altogether.
  • Gifts and Inheritance. In some cases, individuals receive gifts or inheritances that they can use to purchase or invest in residential real estate.
  • Real Estate Investment Financing. Investors often use different financing options, such as commercial loans, hard money loans, or private equity, to purchase residential properties for investment purposes.