FHA Home Loans
Ready to buy your first home? Working with limited income or money for a down payment? A government-insured Federal Housing Administration (FHA) home loan may be the right solution for you. The FHA loan program has been helping people buy homes since 1934, and Midwest BankCentre is proud to offer this solution to St. Louis residents.
How can I qualify for an FHA Home Loan?
FHA Home Loans are mortgages insured by the Federal Housing Administration (FHA), which makes them more accessible to borrowers with lower credit scores and down payment limitations. To qualify for an FHA Home Loan, you need to meet certain requirements, including steady employment, and a manageable debt-to-income ratio. Additionally, you'll need to provide the necessary documentation to demonstrate your eligibility.
Advantages of an FHA Loan:
There are many advantages to FHA home loans. These loans are ideal for home buyers who may have limited credit or less to invest in a down payment. The FHA home loan was designed to make home ownership affordable. Once approved, the benefits include:
- A low, 3.5% down payment.
- Gift down payment funds are allowed
- Down payment assistance grant/programs sometimes allowed
- Available with fixed and adjustable rate mortgages.
- Flexible income and credit requirements.
- Low closing costs.
- Sellers may contribute up to 6% of the closing costs and prepaid items.
FHA Home Loan Requirements
When applying for an FHA loan, it is important to keep in mind that there are some FHA loan limits based on location.
It is possible to secure an FHA home loan with a lower credit score than a conventional loan, which has more strict requirements. The minimum score is determined by the lender or loan officer, making it possible for more residents to achieve the dream of home ownership. While there is no minimum requirement, the chances of approval increase with a higher credit score, in conjunction with income and employment factors. FHA home loans do have a loan limit that is dependent on area. To learn more about FHA requirements, contact one of our mortgage officers to discuss your specific financial situation.
Fixed rate for 30- or 15-year Term:
Both options offer the same interest rate stability, but the 15-year term has higher monthly payments, giving you a faster way to build up home equity. You can use this higher equity as a down payment when you move to your next home. Some FHA loans have loan amount caps and vary depending on location.
What is the maximum loan amount for an FHA Home Loan?
The maximum loan amount for an FHA Home Loan varies based on the location of the property. The Federal Housing Administration sets loan limits annually, taking into account regional housing market conditions. These limits typically reflect the median home prices in each area. It is important to consult with a mortgage professional or utilize online resources to determine the specific FHA loan limit applicable to your desired property location.
Apply For A St. Louis FHA Loan
Midwest BankCentre is an FHA lender and offers FHA home loans to residents throughout the St. Louis Metropolitan Area. Our mortgage specialists live and work in the Show Me State, making them highly familiar with the local housing market and offering a competitive mortgage rate. This allows our team to make sure that you receive the best local FHA mortgage loan for you.
An Affordable Home Loan Solution
A Great Option for First-Time Homebuyers
FHA loans can be used to help buyers who want the opportunity to put less money down on a home. Because of the low down payment, FHA loans can be beneficial for a first time home buyer, as well as those with less-than-perfect credit. It's easy to see why so many people consider St. Louis FHA home loans when looking to buy their first home.
FHA borrowers pay a monthly insurance premium (MIP) similar to mortgage insurance. This protects the lender from losses if a borrower defaults on a loan and homebuyers must show proof of income to qualify.Midwest BankCentre, a Federal Housing Administration-approved lender, has processed FHA loans for borrowers all across the United States. The State of Missouri offers assistance programs for first-time homebuyers, including grants, loans, down-payment assistance, and tax credits. Let one of our experts help you through the process!
What are the advantages of FHA Streamline refinancing?
FHA Streamline refinancing is a simplified process designed to help FHA borrowers reduce their mortgage payments and interest rates. The advantages of FHA streamline refinancing include minimal documentation requirements, no appraisal requirement, and the ability to refinance without requalifying for credit or income. This makes it a convenient option for borrowers who want to take advantage of lower interest rates or reduce their monthly mortgage payments without extensive paperwork.
Can I use an FHA Home Loan for a fixer-upper property?
Yes, you can use an FHA 203(k) Rehabilitation Loan to finance the purchase and renovation of a fixer-upper property. This specialized FHA loan program allows borrowers to combine the cost of home purchase and repairs into a single mortgage. It provides funds for both the acquisition of the property and the renovation work, making it an attractive option for those looking to improve the condition of a property while financing it.