Home Equity Loan Lenders St. Louis
Hometown Equity Mortgage is an FHA approved lender and has successfully arranged these loans for borrowers in St. Charles County, Kansas City, and throughout Missouri. We’re trusted, experienced and here to help you through a smooth home buying process.
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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 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%
The FHA doesn’t mandate a minimum credit score but rather considers each borrower’s creditworthiness in context.
What are the benefits of an FHA home loan?
The FHA insures your home loan so that we, the lenders can offer you a better deal such as:
- A low down payment of as low as 3.5% of a home purchase price
- Qualify for easy credit
- 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
Best FHA Lender
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 loans. The first up front premium is 1.75%and either 1.35 % (LTV greater than 90%) or 1.30 % (LTV 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. As the down payment is much lower, the FHA loan is usually the best mortgage choice.
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.
How do I get started?
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