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FHA Loan: Features and Benefits

FHA loans are often an excellent option for first time home buyers. They are government backed and offer more lenient guidelines than other loan programs.  See below for how the features of an FHA loan can benefit a first time home buyer.

 

FHA Features

FHA Benefits

Minimum down payment of 3.5% of the purchase price.

This low down payment is attractive to those who have little saved for a down payment. In some cases, FHA allows the full 3.5% down payment to be gifted from a very close relative.

 

Minimum 640 Credit Score 

The FHA Credit Score criteria is not as strict as other loan programs with a low minimum middle credit score of 640. Some investors may allow credit scores to be as low as 620.

 

Higher Debt-to-Income limits

The FHA Debt-to-income limit may go as high as 41% and may be even higher depending on the investor guidelines.

 

Seller Concessions allowed

Seller Concessions means the seller may pay the borrowers closing costs and prepaid items up to 6% of the purchase price.

 

FHA Loans require both an upfront mortgage insurance fee and annual mortgage insurance premium. 

The upfront mortgage insurance can be financed into the loan and the annual mortgage insurance is calculated monthly in the mortgage payment.

 

Long Term Fixed Rate Financing

Interest rates will not change for the life of the loan. This means your principal and interest payments will never change.

 

 

 

From Our Customers

"Keri was phenomenal. She made the entire process from start to finish super easy and with little stress. I would highly recommend her and Platte Valley Bank to anyone looking for a home loan."

Chris S.

Platte City, MO  ·  Bought a home in June 2016

From Our Customers

"PVB is fantastic to work with. They knows the mortgage lending and underwriting process! They will help streamline your home loan at Platte Valley Bank and offer wonderful & competitive rates and closing costs! Five Stars!"

Gus S.

  ·  Builder/Realtor Relationship

From Our Customers

"I've had a working relationship with Platte Valley Bank and Keri Rotterman for the last 16 years. She's always professional and keeps the process running smoothly by making communication a priority. Lending guidelines are increasingly complex but Keri's knowledge and experience keep my buyers on task. She goes the extra mile to get us our ultimate goal... A new home. I believe in Keri so much that she has done my personal home loans!"

Paige S.

  ·  Realtor Relationship

From Our Customers

"We own a very unique home and my husband and I are both self-employed, so we were prepared for a very difficult situation. Keri knew what documents we needed to complete, she went to work and closed on our refinance in a matter of a few weeks. It was a very smooth process, she answered our questions about refinancing. As an added bonus, Keri is one of the best closers I have ever worked with as a realtor. She's a 10 on a scale of 1-5!"

Anne R.

Kansas City, MO  ·  Refinanced Home in 2015

From Our Customers

"Just wanted to say thank you to Platte Valley Bank for all of their help and patience! I love my new home and I'm looking forward to spending many years here creating wonderful memories!"

Nancy L.

Kansas City, KS  ·  Purchased New Home in 2016

   

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