Missouri has fared quite well during the recession, but it by no means has found a solution in finding all low-income families a way of maintaining economic prosperity. Indeed, such families will need to resort to government assistance in the form of the FHA mortgage loan- a godsend for anyone on a budget that can’t afford normal mortgage rates.
There is not a minimum credit score required in order to get approved for an FHA mortgage. There is, however, a requirement to get automatically approved. If you have a credit rating that is below 600, odds are that you will have to submit to manual review. The government may still guarantee your mortgage loan, but you will simply have to go through a bit more work in order to acquire the FHA approval.
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.
For the FHA to guarantee your loan, they will need to know that you are trustworthy. The normal rules apply: a look at your employment history, citizenship of Missouri and the United States, debt ratios, and whether or not you have declared bankruptcy in the past decade. The FHA only guarantees loans for those who qualify- it is by no means a magic cure for anyone down on their luck.
The Federal Housing Administration is always looking at ways they may improve and expand their service to low-income families. One recent addition to the services offered is the FHA-Secure legislation. Under this passed legislation, the FHA is able to offer refinancing for previously made FHA mortgages. Fixed rate mortgages may be switched over to adjustable rate mortgages- allowing borrowers to take advantage of rock-bottom interest rates.
The FHA has established its services in order to help low income families. Despite their good will, there are lenders out there that will take advantage of the generosity of the government-run program in what is called predatory lending. In predatory lending, a lender might offer a loan with the intent of having the borrower fail to make payments. If you think that you might have seen a case of predatory lending, contact the Federal Housing Administration immediately.
Final Thoughts
There are plenty of lenders in the Columbia, Missouri area that are willing to hear out your plight. Even if you are down on your luck, you can get the help of the FHA to guarantee your loan. Also look into mortgage brokers to have multiple lenders in Boone county compared in a matter of minutes according to your criteria.
Learn more about Columbia Mo Mortgage Advice and Columbia Mo Mortgage.