The Federal Housing Administration (FHA) insures some mortgage loans so that more lenders are willing to make loans to borrowers who might not be able to qualify for other loan types. This is true for borrowers with sketchy credit histories or because of high debt-to income ratios. With a FHA insured loan, a homebuyer can make a down payment of as little as 3 percent. The FHA charges the borrower an upfront mortgage insurance premium fee, plus a monthly charge on all loans.

Answer: No. FHA was designed for first time homebuyers. It makes allowances for lower downpayments, higher ratios to qualify and offers other programs to help make housing more affordable.

Anyone who meets the credit requirements can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.

Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is streamlined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan.

No. Due to extensive compliance regulations and intense restrictions set forth by HUD, we have decided to eliminate FHA products. However, we have access to aggressive FHA look-alike programs. These programs offer better pricing, more flexible underwriting and substantially higher loan limits than current FHA, all without government restrictions.

The FHA does set limits on the amount you can get on an FHA mortgage loan. These limits are individually set in each county and state within the United States. You can view an itemized list of the limits at HUD. FHA mortgage loan limits are based upon the Fannie Mae/Freddie Mac limits on regular mortgage loans. They are set according to the type of home-single family, plus two, three and four family dwellings. FHA mortgage loan limits may vary between counties.

Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses, like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-income ratio.

agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing. FHA loans have inspection requirements that often scare sellers but their requirements are rarely stricter than a St. Louis area municipality. (Back to Top)

There are three main types of FHA Financing. More information may be obtained from any mortgage company familiar with FHA Guidelines for the various programs. If the Property does not have any mandatory repairs FHA will insure the Loan hence the classification of "IN" When a property has less than $5000 in repairs to bring it up to Minimum Property Standards, FHA will insure the loan provided the repairs are completed by the Buyer or the Buyer's agent within 90 days from the date of Closing.

The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt

Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan. The FHA requires a single, upfront mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing. This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term.

We have a 24-hour underwriting standard, and can close loans within a day of approval. Of course, an accurate application, with appropriate client documentation directly influences loan decision and closing speed. It's really under your control.

Answer: No. FHA (Federal Housing Administration) and VA (Veterans Administration) interest rates fluctuate just like conventional mortgages. It's best to shop around.