Is an FHA
Home Loan Right for you?
FHA loans are an option for homebuyers that haven’t saved up for a large down payment to purchase their new Primary home. An FHA Loan is a mortgage that is insured by the Federal Housing Administration. The program allows borrowers to finance a new primary home purchase with a low down payment and will typically carry a lower interest rate, cheaper Mortgage Insurance, and will allow for a lower credit score.
FHA lenders will review your credit history to determine if you qualify for the program. Even if you have less than stellar credit, you may still qualify for an FHA Loan.
Bankruptcy:
you must be at least two years out from the discharge date of a Chapter
7 bankruptcy and you must have established good credit or not have incurred any
new credit obligations since the discharge
Late
Payments: you need to have a minimum of 12 months of
payments on current obligations that are made on time
Foreclosure:
these are considered on a case-by-case scenario and will depend on the
circumstances that led to the foreclosure
Collections,
Judgments and Federal Debt: Typically,
collections and judgments must be paid off prior to or at the time of closing,
except for medical collections
No
credit history: In some instances, you can provide
documentation to build non-traditional credit such as insurance payments, cell
phone bills, electric bills, etc. Your
lender can assist you with what is needed to complete this
FHA Loans
will also allow for Gift Funds to assist with the down payment requirement and
closing costs. These funds can come from
any of the following sources:
·
Borrower’s
family member
·
Borrower’s
employer or labor union
·
A
close friend with a clearly defined and documented interest in the borrower
·
A
charitable organization
·
A
governmental agency or public entity with a program providing homeownership
assistance to low- or moderate-income families or first time homebuyers
There are
also maximum loan amounts for different parts of the country. These have been calculated by FHA and are
known as FHA lending limits. These are
calculated and updated annually. Below
are the 2023 limits.
|
LOW COST AREA |
|||
|
2023 FHA Limits |
|||
|
Single |
Duplex |
Tri-plex |
Four-plex |
|
$420,680 |
$538,650 |
$651,050 |
$809,150 |
|
HIGH COST AREA |
|||
|
2023 FHA Limits |
|||
|
Single |
Duplex |
Tri-plex |
Four-plex |
|
$970,800 |
$1,243,050 |
$1,502,475 |
$1,867,275 |
|
|
|
|
|
Team Lasson is here for
all of your home buying needs! If you're thinking about making the leap into
home ownership in the near future, please contact us today to get started. We can help you determine what loan programs
works best for your financial goals. The first step in preparing for your big
purchase is to get pre-approved for a mortgage at Lake of the Ozarks. To get started, visit www.yourlakeloan.com or give us a call at (573) 746-7211!
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Michael Lasson
Senior Loan Officer
NMLS #: 493712
First State Bank
Mortgage – Michael Lasson
2751 Bagnell Dam Blvd
Suite B
Lake Ozark, MO 65049
Direct: (573) 746-7211
Cell: (573) 216-7258
e-Fax: (866) 397-0318
Email: mlasson@fsbfinancial.com
Website: www.YourLakeLoan.com
**The postings on this
site are my own and do not necessarily represent First State Bank of St
Charles’s positions, strategies, or opinions.
