What is a Missouri FHA Loan?
A Missouri FHA loan is how one would refer to an FHA loan granted in the state of Missouri. FHA loans, in broad view, are home loans backed by the government and lent by approved 3rd party bodies that are designed to have lenient requirements, the end goal being to extend home ownership to individuals with poor credit or fewer resources than traditional mortgage applicants. Being government-backed, FHA loans tend to have very reasonable rates and terms, and more forgiving credit requirements. FHA loans are designed to be used to buy a primary dwelling, meaning that vacation homes, second homes, and properties intended to be purchased only as investments are not covered by the FHA loan program. Furthermore, one must be a legal resident of the USA, though being a citizen is not required. Below, we at Online Loans have broken down the assorted information available across the web into a convenient need-to-know to make getting you FHA loan as simple as possible. Our mortgage calculator can also help you to further determine how much a home loan will end up costing you altogether.
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In order to be eligible for an FHA home loan, an applicant must be a legal resident of the USA and must be seeking to buy a primary residence. For FHA loans requiring only a 3.5% down payment, applicants must have a credit rating of at least 580. For loans with a 10% down payment, credit ratings as low as 500 will still be acceptable. If you have a credit rating below 500, the FHA might still work with you, as they have allowances in their mandate for individuals suffering under unusual or non-traditional credit histories. There is a kind of FHA loan designed for home renovation called a 203(k) FHA loan that is worth exploring here. 203(k)s are based on an appraisal of the desired home which sets a value as if the renovation has already been completed, which in turn allows for more funds to be included in the loan, funds which can then be used to make the repairs.
If you’re interested in getting to know or improving your credit, you might find our credit rebuilding guide helpful.
Rates for FHA loans, like any loans, will vary based on a variety of factors, they being the credit history and income of the applicant, the specific mandate of the 3rd party lender, the length of the loan, and the size of the loan. That being said, FHA loans in Missouri tend to sit between 3.5% and 4.5% APR. As an aside, it’s worth noting that FHA loan rates are fixed, meaning that they will not fluctuate with the lending market the way rates attached to a credit line might.
Maximum ($) Limits – By County
The FHA sets limits to how large a given FHA loan can be by county and by home-type, primarily to account for the differences in expense between counties when it comes to buying a home. This data is made available by HUD but can be tough to sift through on their site, so we funneled the data into the interactive table you see below to aid you in your researching efforts. Download Formats: Excel (.xslx) & CSV