Federal Housing Administration – Government Loans
The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.
The Kandiyohi County FHA loan limits as of 2020, allow homebuyers to possibly borrow up to 96.5% of the value of a home with an FHA loan (meaning a borrower will need to make a down payment of only 3.5%). Supreme Lending borrowers will need a credit score of at least 640 to qualify. With FHA loans in Willmar, down payments can come from savings, a financial gift from a family member, or a grant for down-payment assistance.
All these factors make FHA loans in Willmar popular with first-time homebuyers.
Bankruptcy not an automatic disqualification
Lower interest rates
Down payment is less
Lower mortgage points and other closing cost requirements
Resale can be made more quickly
Is backed by the U.S. government
Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower
Loan Limits are lower than conventional
MIP required regardless of the Loan-to-Value (LTV)
A Supreme Lending Originator will evaluate a borrower’s qualifications for an FHA loan in Willmar as usual, but in addition to looking over a credit report, we may look at work history for the past two years and other typical payment histories, such as utility and rent payments. Keep in mind that the lower your credit score and the less you put towards a down payment, the higher the interest rate and monthly payment will be on the mortgage. It’s also important to remember that when buying a home, borrowers may be responsible for certain out-of-pocket expenses such as loan origination fees, attorney fees, and appraisal costs. One of the advantages of applying for an FHA loan in Willmar is If the seller or the builder is having a hard time finding a buyer, they may be able to help you at the closing table.
The Federal Housing Administration (FHA) was created in 1934 as an effort to bolster home sales during the Depression. By financially guaranteeing loans, the FHA loan in Willmar, MN lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.
The FHA Loan in Willmar is designed for low-to-moderate-income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.
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NOT A GUARANTEE, OFFER OR AGREEMENT. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Willmar, MN 75254. 877-350-5225. © 2017. Information, rates, & programs are subject to change without prior notice. Subject to credit & property approval. Not affiliated with any government agency. Intended for Minnesota Consumers Only. Minnesota- SML Mortgage Banker Registration Residential Mortgage Loan Originator.