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Thanks to FHA First Time Home Buyer mortgage programs, right now may be your best time to take advantage of a St. Louis or St. Charles County real estate deal.

As a 15 year veteran mortgage professional, I can’t recall a time more advantageous to buy your first home.

If I were considering becoming a first time home buyer I would get myself pre-approved to insure how much I can afford, what my payments will be, and what roadblocks may lay ahead, then I would rush out looking for my new St. Louis home.

If you are a first time home buyer more than likely, when you do get pre-approved and find a St. Louis house, you will be buying your new home through a FHA mortgage.

What is an FHA mortgage?

Early in my mortgage career, FHA mortgages were referred to as First Time Home Buyer mortgages because they were the only available mortgage that allowed a home buyer to get into a new home with a very low down payment. At that time nearly all first time home buyers utilized the FHA mortgage program.

Once Fannie Mae and Freddie Mac came along with their 100% mortgage programs FHA disappeared.  Since those 100% home loan programs are no longer available today, FHA has returned with low interest rates, easy qualification, and a minimal down payment requirement of 3.5% of the sales price.

In our local St. Louis and St.Charles area the median home price has dropped by about $15,000 down to $185,000.  This is the point where half the houses sold are on one side of the median or on the other side.  One of the main reasons that the median price has fallen is that so many St. Louis First Time Home Buyers have entered the market and are snatching up homes in their price range using FHA financing.

Why are First Time Home Buyers using FHA?

• Interest rates are generally lower than similar conventional mortgages.
• The monthly mortgage insurance payment for FHA is much lower than with similar conventional mortgages.
• FHA has more flexible credit qualification guidelines than conventional mortgages.
• You can get an FHA mortgage with no credit scores.

FHA also allows for the seller of your new home to contribute up to 6.000% of the sales price to pay for your closing costs.  I have had great success helping my clients negotiate with the seller to have the seller pay all your closing costs and some times even to help buy down your interest rate.

When your seller is providing the funds to cover your closing costs then you as a First Time Home Buyer only have to come up with FHA mandated 3.5% down payment. If you are the typical First Time Home Buyer you may not have 3.5% down payment available or it may be all that you have in your savings. Do not worry, in the FHA underwriting manual they list 22 unique and distinctly different methods for you as a home buyer to come up with your down payment. Even better, the Federal government has provided you with an $8,000.00 tax credit that many of my First Time Home Buyers are turning into the 23rd method of securing their down payment.

Yes, it is a great time to buy your first home, interest rates are low, the goverment is providing you with money to help, homes are on sale and are priced lower than they were just last year, sellers are willing to negotiate, and there is a great mortgage program built just for First Time Home Buyers and it is FHA.

It is important to get pre-approved for a St. Louis FHA mortgage with a local mortgage company familiar with updated FHA guidelines and the ins and outs of our local real estate market.

If you have questions or would like to get pre-approve, please feel free to contact me.  I specialize in working with St. Louis First Time Home Buyers put my 15 years of mortgage experience as a loan officer and FHA underwriter to work for you.

Bob Rutledge
Midwest Mortgage Capital
314-744-7843
bob@bobrutledge.com
www.bobrutledge.com
“Your Home Purchase Is Your Biggest Investment You May Make, Let An Expert Help You”