St. Louis FHA Loan – FHA Mortgage
Sean Z and his group of mortgage professionals are proud to be able to offer a full line of FHA loans to St. Louis homebuyers.
Whether the house is move in ready or in need of repair, we can help streamline the application process for you to help you get the funding you need. The FHA, or the Federal Housing Administration is not a lending institution. What they do instead is provide insurance to lenders who are willing to grant mortgages to high risk buyers. This gives a St. Louis resident with a below average credit score the opportunity to own their own home.
What is Mortgage Insurance?
Mortgage insurance works much like any other type of insurance policy you may have. Considering the amount of money at stake, banks like to have some guarantee that if you are unable to continue making payments on your loan, they will recoup at least a portion of their losses. Most mortgage insurance companies have very strict guidelines for a lender to follow making it difficult for people with a less than stellar credit score to secure funding.
The FHA promotes home ownership by overlooking some flaws when they approve a mortgage. This gives the lender the peace of mind to go ahead with the application, knowing that the FHA is backing it. You will be required to make an initial payment towards your mortgage insurance of about 1.75% of the loan amount. In addition, there will be a monthly premium, MIP, on your mortgage statement each month. The amount of insurance you pay is directly related to how much of a down payment you make on the home. The more of your own money invested, the less the insurance premiums.
The funds collected from the insurance premiums are used by the FHA in the event that you are unable to continue with your loan payments. Having that kind of security behind you makes a lender more willing to work with you, despite possible flaws in your credit history.
Talk with your Sean Z mortgage expert to find out if an FHA backed loan is a viable option for you.
How do I get approved for an FHA Loan?
An FHA loan works in perfectly with the Sean Z TBD Mortgage Approval Program. The FHA encourages home buyers to find out if they qualify for one of their loans without any details about the house. They know like we do, that the value of the home has nothing to do with whether or not you can afford the mortgage. Imagine how much nicer your house shopping experience is going to be when you already have the peace of mind that your mortgage application was approved. You can direct the agent to show you homes that are specific to your price range, avoiding possible disappointment later on.
In order to pre-qualify for an FHA loan, you should be able to show job stability and reliability. They are not interested in seeing a pristine credit score, but rather that in the past two years you have been consistent with your work history and loan payments. Even a past foreclosure won’t automatically disqualify you so long as it is at least two years old. We want to see you pre-qualify through FHA and will help you gather all of the paperwork you need to get the process started and get you into the house you have been dreaming of.
Let Sean Z and his team put you in the fast lane to home ownership with a loan backed by our Federal Government.
Different Loans For Different Circumstances
The FHA offers a variety of options for St. Louis homebuyers, the most popular being the FHA 203B mortgage and FHA 203K mortgage. The 203B is for a move in ready single family home that will be owner occupied, while the 203K is designed to help a new homeowner make repairs on a house that has been neglected. Both of these programs came with the same guarantee to your lender.
Ask your Sean Z mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you are able to receive the funding you need, whether for a home in mint condition or one that needs extensive renovations.
If you have been putting aside your dreams of owning a home let our team help you make them a reality. With little money down an FHA loan and the Sean Z team of professionals will help put those house keys right in the palm of your hand.