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. FHA loans have been helping people buy homes since 1934, and Midwest BankCentre is proud to offer this solution to St. Louis residents.
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 of this loan include:
- A low, 3.5% down payment.
- Down payment funds can be a gift from a relative.
- 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 a FHA loan, it is important to keep in mind that some FHA home loans have a loan value cap 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, 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. To learn more about FHA requirements is it important to contact a local mortgage officer 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 house. Some FHA loans have loan amount caps and vary depending on location.
Apply For A St. Louis FHA Loan
Midwest BankCentre 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 competitive mortgage rates. This allows our team to make sure that you receive the best local mortgage solution for your needs.