Missouri: Mortgage and Loan

While the demand for homes in Missouri fluctuates annually, the mortgage loan programs and options available may come as a surprise for some.We do offer a broad range of quality mortgage programs; however, the Missouri FHA loan program is a perfect option for virtually everyone. Whether you are a home buyer looking to purchase using the FHA program or a homeowner seeking an FHA streamline refinance, the FHA loan does not discriminate between first-time home buyers or seasoned homeowners.

The American Association of Residential Mortgage Regulators (AARMR), the Conference of State Bank Supervisors (CSBS), along with government agencies in the state of Missouri, particularly the Division of Finance, were very much concerned about the risks that come with non-traditional mortgage and loan programs, especially high risk sub prime programs. An "inter-agency" guidance has been published in the 71st volume of the Federal Register to furnish loan and mortgage providers (and home buyers) with necessary and adequate knowledge about these risks. The federally regulated FHA Loan in Missouri is the most ideal option for home buyers and homeowners alike.

What are non-traditional Missouri mortgage/loan programs?
Since some traditional home loans are not always easily accessible, given the much larger downpayment requirements and credit score floors, the FHA has tried to cater to a wider spectrum of consumers by offering more flexible programs. In this approach, consumers with imperfect credit who have established recent stable credit histories and high LTV (load-to-value) or DTI (debt-to-income) ratios, have a better opportunity of buying or financing a home of their own. All FHA loans in Missouri come with mortgage insurance premiums. Mortgage insurance premiums are simply preset fees that insure lenders in cases of foreclosures.

Examples of conventional program options not available with the FHA loan program specifically include interest only mortgages, along with 3/1, 5/1, 7/1, and 10/1 adjustable-rate mortgages (ARMs).

• Interest Only Mortgages - In this kind of program, a consumer does not pay the mortgage principal for a set period, normally the first ten years. This type of program is not available with the FHA loan program in Missouri.
• ARMs - ARMs are sometimes utilized as marketing tools by loan companies to expand the amount of home a borrower can purchase through a much lower starting rate. This kind of program typically provides for lower payments (usually lower than the index rate) during a span of time, adjusting higher or lower based upon the index they're tied to and the margin of profit established at closing. These types of ARM products are very high risk. The FHA loan program in Missouri only provides for an FHA one year ARM program. This is because the FHA offers a streamline refinance program that does not require the borrower to "re-qualify" for a loan -- provided they have made no late payments on their mortgage. The FHA one year ARM is designed to provide access to a quality loan that can then be refinanced into a more secure fixed rate loan after the first year.

How do I start my Missouri FHA loan process?
As a home buyer or homeowner, you have a statistically better chance of getting the best deal, and lowest rate, on a home loan in the secondary market. The best way to obtain a home in Missouri is to get pre-approved for an FHA loan with us. Getting pre-approval from us allows you to gauge the type of home you can afford, as well as how much money you will need to pay for closing costs and down payment.

For the Missouri FHA loan, you will need to be prepared to disclose some necessary documents and information regarding your gross monthly income, credit quality, and monthly debts in order for us to arrive at a good calculation of the maximum financing you can afford (based upon underwriting guidelines). If you still have not chosen a lender, we would love to help you with your Missouri mortgage. Our website also offers a diverse portfolio of mortgage calculators you can use to see many of the factors involved in the lending process.