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FHA Loans

Hometown Equity Mortgage is an FHA (Federal Housing Administration) approved lender and has successfully arranged FHA loans for borrowers in St. Charles County, Kansas City, and throughout Missouri. We’re here to help you through a smooth home buying process. We’re also now licensed to serve in you 33 states.

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development.

In the housing market turndown, FHA home loans have become one of the most popular options. Borrowers with FHA home loans pay for mortgage insurance which protects the lender from a loss should the borrower default on the loan. Because of that insurance, mortgage lenders can offer attractive interest rates.

*Can I qualify for an online FHA mortgage loan?

Good candidates include:

  • First-time home purchasers
  • Buyers with less-than-perfect credit
  • Borrowers who’ve filed for bankruptcy
  • Purchasers who make a down payment of less than 20%

If your credit score is 580 or higher, you can get an FHA loan with as little as 3.5% down. If your credit score is below 580 you aren’t necessarily excluded from FHA loan eligibility.

What are the advantages of a Federal Housing Administration loan?

The FHA insures your home loan so that we, the lenders can offer you a better opportunity such as:

  • A low down payment of as low as 3.5% of a home purchase price
  • Low closing costs and fees can be included in the loan
  • Some home sellers, builders and lenders may pay some of the borrower’s closing costs as an incentive to buy a new home

The FHA is not a lender but rather an insurance fund. Borrowers get their home loan through an FHA-approved lender, not directly from the FHA.

Mortgage Insurance Requirements

Two mortgage insurance premiums are required on all FHA home loans. The first up front premium is 1.75%and either 1.35 % (Loan To Value greater than 90%) or 1.30 % (Loan To Value less than 90 %). The up front premium is paid when the borrower gets the loan. It can be financed as part of the loan. The annual premium is paid monthly with each month’s mortgage payment.

Need extra cash for home repairs?

The FHA has a type of loan called a 203K and the amount is based on the projected value of your home after the repairs are completed. Another version of this loan, the FHA’s 203K Streamline Program allows the borrower to finance up to $35,000 in nonstructural repairs — such a cabinetry, painting and other nonstructural repairs.

The FHA expects a property to be livable from day one. Buyers of distressed properties need to win a clean bill of health and the Streamline Program allows homeowners to borrow up to $35,000 for nonstructural repairs to bring the home up to speed.

What if I experience financial hardship, is there some help available?

Loan servicers can offer some relief to borrowers who have an FHA-insured loan and are struggling to make their payments. The temporary relief may include:

  • Lowering the interest rate
  • Extending the payback period
  • Even deferring part of the loan balance at no interest

FHA Reverse Mortgages for Seniors

If you’re 62 or older, and live in your own home you may be eligible for an FHA Reverse Mortgage. If you own your home outright or have a low loan balance, you can convert a portion of your equity into cash.

Financing for Mobile Homes & Factory Built Housing

There are two programs available. One is for those who own the land and the other for mobile homes that are or will be located in a mobile home park.

Get Started Online

Hometown Equity Mortgage makes it easy. Apply online to see if you qualify by clicking on the banner below or call us and we’ll be happy to discuss your needs at: (855) 563-4836

Apply Now

“Hometown Equity Mortgage has made a life long customer out of me. The rate we received when refinancing was the lowest – beating out 3 other banks. ALL of my questions (and I had a lot) were answered in a timely manner and in depth, leaving me feeling confident through the process. The transition from beginning to end was seamless and before I knew it we were clear to close. I HIGHLY recommend Don and his team at Hometown [Equity Mortgage].” — T.A., O’Fallon, MO / 5 Star Review at Zillow

Disclaimer: Certain restrictions and credit approval apply; not all applicants will qualify. All approvals are subject to underwriting guidelines which include but are not limited to: acceptable credit & income history, current homeowners insurance, property value, debt to income ratio, etc. Minimum & maximum loan amounts apply. Please contact Hometown Equity Mortgage for further details.