Federal Housing Administration Loans, commonly referred to as FHA loans, offer qualified buyers low-interest mortgage loans and a low down payment. With flexible terms and government backing, FHA loans are ideal for first-time home buyers or those who may not be approved for a traditional home mortgage. With a low cost of living and tight-knit communities, St. Louis is a perfect city for individuals or families looking to purchase their first home using the FHA loan program.
Advantages of FHA Loans
- Your Credit Does Not Have to be Perfect While some loans require a high credit score to qualify for low interest rates or a reasonable down payment, an FHA loan allows those with below-average credit, like first-time St. Louis home buyers or those who are self-employed, to purchase a home.
- Accommodating Income and Debt Requirements When applying for an FHA loan, any income level is accepted, as well as higher levels of debt. This makes it the best option for prospective homeowners who are repaying student loans, auto loans, or have a high credit card balance.
- A 3.5% Down Payment Because FHA loans are insured by the Federal Housing Administration, they offer more flexible mortgage terms. One major benefit is that the down payment required on an FHA loan is just 3.5% of the home’s purchase price, which is ideal for St. Louis residents who cannot currently finance a significant down payment.
- Assuming an FHA Loan Buyers have the option to assume the previous homeowners’ FHA loan. Therefore, if mortgage rates rise, the new owners would enjoy the low interest rate stipulated in the original FHA loan.
FHA Loans with Golden Oak Lending St. Louis
For first-time and qualified homeowners in St. Louis, Golden Oak Lending’s mortgage experts will find the best loan option that fits your unique financial needs. With growing competition in the St. Louis housing market, our loan officer’s expertise could be the crucial factor that secures you your first home. Call us today to find out whether an FHA loan is right for you.