We do a TON of FHA loans. In fact, nobody in the country closes more FHA loans than we do, but what exactly does that mean? An FHA loan is actually a mortgage loan backed by the Federal Housing Administration’s mortgage insurance. They are a federally assisted program that allows families to move into a home with minimal down payment. Currently, all that’s required to purchase a home is a 3.5% down payment. The program goes back to the Great Depression and was initially intended to both provide banks with insurance and help homeowners and new buyers when the rates of foreclosures and loan defaults were steadily increasing. FHA now works primarily for those that can’t afford a down payment, or won’t qualify for private mortgage insurance (PMI). Essentially it’s an insurance policy that guarantees the loan. We also use FHA for refinancing as well. Half of the refinancing done now is through FHA. It allows you to borrow up to 97.5 percent of the value of the house as opposed to a maximum of 90-95% for a conventional loan. FHA rates are also lower than traditional loans. It’s the same rate depending on credit score or amount or percent. A conventional loan has “adjusters” on the loan, changing the rates and percentages. We actually underwrite FHA in house, as we are a Direct Endorsed FHA Lender. Most companies, particularly those that gave up their FHA endorsement status during the early 2000’s when they weren’t being used extensively, have issues becoming an approved FHA lender again, while we maintained our FHA status so that we could continue to underwrite and close FHA loans.
Our process for home loan approval allows us to quickly process and approve FHA loans for families, giving them a way to move into their dream home and establish their lives. Since 2002 we have closed over $500 million in FHA loans for families in Missouri, Illinois, Indiana, Wisconsin, and Iowa.