Save Big With an FHA Home Loan
FHA home loans from Magnolia Bank in Columbia, MO make financing your home fast and easy. With low down payments and competitive interest rates, an FHA loan is a viable home financing option in Columbia, MO and across the United States. FHA loans are a good solution for first-time homebuyers, borrowers who cannot afford a traditional down payment of 20%, and much more. Our FHA loans are available in a variety of fixed-rate and adjustable-rate options and is available for all income levels in Columbia, MO and across the United States.
- Are you looking to buy a primary home with as little as 3.5% down?
- Are you looking for flexible lending requirements for your home loan?
- Do you have less-than-stellar credit or limited cash for a down payment?
If you answered “Yes” to any of these questions, an FHA mortgage might be a good fit for you. Call Magnolia Bank in Columbia, MO today or fill out the form on the side to get in contact with one of our loan officers.
What’s an FHA Mortgage?
An FHA mortgage loan is insured by the Federal Housing Administration (FHA). An FHA loan is typically one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-ideal credit.
FHA Loan Advantages
- Credit Scores can be as low as 500.
- FHA loans are eligible for “streamline” refinances, which is a quicker and cheaper way to refinance your loan in a low interest rate period.
- Less down payment is required, with a 3.5 percent minimum.
- FHA loans typically will have a lower base interest rate than a comparable conventional loan.
- FHA loans are assumable, meaning the interest rate and mortgage balance can be assumed by a new buyer.
- Can use a non-occupant co-borrower to help qualify for the loan using blended ratios.
- 30-, 25-, 20- and 15-year terms are all available with fixed rates
FHA Loan Requirements
- Credit Scores – Minimum Credit Score of 500 for FHA Loans.
- Down Payment – 3.5% down payment from an acceptable source (savings, loan or gift).
- Primary Residence – This loan cannot be used to purchase a vacation home or second home. FHA financing can be used to buy a primary home for a relative.
- Documentation – When applying for a qualified mortgage, you will need documentation of your income.