FHA Loans

FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). 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.  Due to FHA insuring the loans we’re able to offer them at very attractive interest rates, typically with less stringent and more flexible qualification constraints.

Typically the borrower can be approved with 3.5% Down vs. 5% which is typically required on other loan programs. FHA even has a $100 Down Payment Loan on their foreclosed properties, we’ll gladly provide you with a list of these properties for sale in your area.

FHA loans allow borrowers to qualify with lower credit scores, some lenders allowing into the mid to low 500 credit score range.  However, the lower the credit score, the more underwriting requirements there will be, and possibly a higher down payment.

FHA borrowers can use their own savings for the down payment, or gift funds, or a combination of both can be used. Other allowed sources of down payment include a grant from a state or local government down-payment assistance program. We can provide you with Down Payment Assistance sources for Fenton Missouri, St. Louis and St. Louis County Missouri, Jefferson County Missouri, St Charles Missouri and other surrounding areas.

FHA loans allow home sellers and builders to pay some of the borrower’s closing costs, such as an appraisal, credit report or title expenses, to mention a few. Many times home sellers and builders will offer to pay closing costs as an incentive for the borrower to buy a home.

Another option is to accept a slightly higher interest rate which allows the lender to provide a higher credit to offset some or all of the closing costs. Many time turning your loan into a “No Closing Cost” mortgage.

Missouri Mortgage Clearing House is celebrating its 17th year located in Fenton, MO.  We also work with clients in St. Louis MO, St. Charles MO, Jefferson County MO, Kansas City MO, Springfield MO as well as throughout the entire state of Missouri. For more information or to see if you qualify please call us at (636) 717-1900, Apply Now, or fill out the information to the right and we’ll get in touch with you.