Kansas City FHA home loans information. Mortgage information for the Kansas City home buyer.

Kansas City FHA Home Loans || Financing Home

• FHA Loans has earned the nickname “The first-time buyer loan”. The qualifying criteria is more liberal than with conventional loans. Credit scores are not needed to qualify. In fact if a buyer has no previous credit at all they can still be approved. All that is needed is no significant late payments in the last 12 months and all collections and judgments must be brought current. If a buyer is in debt consolidation or chapter 13 bankruptcy they may still qualify for an FHA loan if they have met all the terms of their debt repayment for 12 months.
• The loans are insured by HUD instead of private industry so there will be mortgage insurance called MIP (Mortgage Insurance Premium). This is still less than PMI on a similar conventional loan.
• These loans require a minimum statutory investment of 3%. This can be made up of 2.25% down payment and .75% going towards buyers closing costs. Any additional closing costs can be included in the sales price and paid for out of seller’s proceeds. In other words the buyer finances them by adding them to his purchase price. The required 3% can come in the form of a gift from a family member or an approved non-profit down-payment assistance company.
• The standard ration of debt to income for these loans is 29% of gross monthly income can be allocated to the house payment provided total debt does not exceed 41%. These are guidelines and can be increased if there are compensation factors such as very good credit scores, significant retirement assets, other income that we can verify but does not meet the guidelines to be included in the ratios. Currently the maximum FHA loan amounts in the Kansas City metro area are $179,503 for a single family residence, $202,177 for two units, $245,635 for 3 units and $297,840 for 4 units.