FHA 3% Down Home Mortgage Loan Program
to all your Missouri home mortgage needs, call us toll free 888-694-0455
or apply online by clicking the link below.
The Federal Housing Administration was established to encourage home
ownership throughout the country with the belief that home ownership
increases the stability of a community. Prior to the creation of the
FHA, large down payments were required to secure a mortgage loan.
At present, a minimum of 3% investment is required by the borrower
for the purchase of a home. As an incentive to investors who purchase
loans, FHA insures the loan against default, should the borrower fail
to repay. FHA guidelines also allow for greater flexibility with regards
to credit history and qualifying ratios.
Missouri FHA program opens up opportunities that conventional mortgages
do not offer:
- Expanded Debt Ratios to 29%/41%
- Non-traditional credit history is considered
- Expanded credit criteria
- All of the down payment may be gifted
- Seller may contribute up to 6% toward the closing costs
- Non-occupant cosigners are allowed
- 401-k loans are not counted in the debt ratios