FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA).
What is a FHA Loan?
Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs. The down payment may also be a gift from an immediate family member versus other programs require you to have the down payment in your possession for 2 months prior to closing. On refinancing, FHA is great because once you have an FHA loan you are eligible for a Streamline refinance. This is a refinance that does not require a new appraisal, nor income documentation. We can even underwrite the loan without the need of a credit score or credit history. We just need to show your mortgage history. So even if you have damaged your credit since you bought your house, the FHA streamline can still get you a lower, more affordable payment as long as you have been making your mortgage payment on time for the last year.
Benefits of FHA Loans
There are many benefits to FHA Loans beyond just a lower down payment.
FHA Loan Eligibility
FHA Loans have more flexible requirements than a traditional conventional mortgage.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan.
Get Pre-Approved for a FHA Loan
If you are a first time home buyer, or simply seeking a lower down payment in Chesterfield MO, St. Charles MO, Imperial MO, House Springs MO and St. Louis MO, or anywhere in the state of Missouri, contact Best Rates Mortgage at (314) 412-1979 for more information, simply fill out the form on this page.