The FHA loan, also known as the Federal Housing Administration mortgage loan, is offered in the United States as a method for low-income families to find a mortgage loan. They are common in Columbia, Missouri as the 2000 Census reported the median income of residents to be set around $35,000.

Even though you and your family may have low income, the Federal Housing Administration may not guarantee loans of individuals who don’t have a fair credit rating. Often, a rating of 620 and higher is required to get an instant approval. Anything less, and you are likely going to need to speak with a representative of the FHA authority in order to secure a guarantee for your next FHA mortgage loan.

The best benefit of being approved for an FHA mortgage is the fact that you will only need to supply 3% down as your deposit. For a mortgage that costs $100,000 this means you would only need to save $3,000 if you qualify. Even more appealing is the fact that you may receive up to 6% of the closing costs associated with the FHA mortgage loan.

Having a credit rating of zero is a nightmare in applying for mortgage loans. Lenders like to see at least a rating of 600 in order to give out approval- but all is not lost if you haven’t built any credit. The FHA will work with applicants who don’t have credit by reviewing previous commitments to bills, earnings, and current expense reports. An estimate of what one’s credit should be will be formulated as a result.

Recent legislation has made “FHA-Secure” a new program endorsed by the Federal Housing Administration. Columbia, Missouri residents that qualify will be able to refinance their FHA mortgages and make them adjustable-rate. FHA-Secure is a program that has its requirements as well- you must be current on your mortgage and have no further blemishes on your credit rating since you have obtained the original FHA mortgage loan.

As a last note of caution, do know that there are such things as predatory lending in regards to FHA mortgages. Lenders might take advantage of the fact that you are not able to pay a mortgage, yet offer a loan anyway because of the guarantee the FHA puts on the loan. Acts such as these are illegal, and if you feel that you have become victim to predatory lending, you should check with the U.S. Department of Housing to make a claim.

Closing Comments

FHA programs have allowed Columbia, Missouri residents to get the homes and properties they need to start a family- with almost no money down and payments that are tailored to their budget. For more information, check with a Columbia, Missouri mortgage broker to get free consultation and quotes.

Learn more about Mid Mo Mortgage and Columbia Mo Mortgage.