Buying your first home can be an exciting and terrifying commitment, but there are options at your disposal to make qualification easier. Federal and state governments grant insured mortgages in KC through the Federal Housing Administration that encourage this first big step. These loans have:

Even those who have saved up for a good down payment may still be attracted to insured mortgages in KC for other benefits. The FHA guarantees their insured loans for lenders, protecting them against potential default from the first-time home buyer.

How to Qualify for an Insured Mortgage

Qualifications may vary by lender, but general guidelines include a:

  • Minimum credit score of 580 or more
  • 3.5 % down payment
  • Complete documentation of your gross income and assets
  • A debt-to-income ratio no higher than 43% of your monthly gross income

The property must also be your primary place of residence. Therefore, if you plan to rent it out, you may not qualify for this insured mortgage.

Qualifying as a “First-Time Home Buyer”

Many people assume that a first-time home buyer is someone who has never owned a home. However, the FHA considers anyone who has not owned a home for three or more years in this category. If you meet the other requirements, you can still reap the benefits of insured mortgages in KC.

Reasons to Choose a Conventional Loan

Insured mortgages in KC are not for all first-time home buyers. These mortgages have a set date for refinancing or changing the terms of your debt. Therefore you have less freedom to refinance than you would with a conventional loan. In addition, you may have to purchase private mortgage insurance which can lead to higher fees or a longer loan term. Be sure to discuss insured mortgages for first time home buyers with your loan officer to decide if it’s the right choice for you.

Discover All of Your Mortgage Options Today

Contact Cornerstone Mortgage, Inc. at 800-965-9910

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.