Kansas FHA Loans

An FHA loan is a type of mortgage loan that is insured by the United States government with the intention of providing accessible financing to families that would otherwise not qualify for a conventional Kansas mortgage. Because these loans are backed by the Federal Housing Administration (FHA), the financial risk to lenders is significantly reduced.

This reduced risk allows an FHA lender in Kansas, like Griffin Funding, to offer loans to first-time home buyers or those with less-than-perfect credit history, while maintaining low down payment requirements, flexible credit qualifying criteria, and competitive rates.

Here are just a few of the many benefits of utilizing an FHA home loan in Kansas to buy or refurbish a home:

• Competitive interest rates: Because the FHA assumes some of the financial risk, lenders can offer competitive interest rates that rival conventional mortgage loans.
• Flexible credit criteria: A relatively low FICO score, limited borrowing history, or past bankruptcy will not immediately disqualify you from an FHA loan in Kansas. As long as your application shows responsible financial habits, income consistency, and a credit score of at least 500, you can still be eligible.
• Low down payment requirements: The down payment for a Kansas FHA loan can be as low as 3.5% for a well-qualified borrower. This is lower than the usual 5% to 20% requirement for conventional mortgage loans.
• Flexible structure: The FHA 203(k) program offers the opportunity to lump your home purchase and the cost of any necessary renovations or repairs into a single mortgage. There are also options for fixed- or adjustable-rate mortgages.

Kansas FHA loan requirements are much more flexible compared to conventional mortgage loans. However, there are still basic requirements you’ll need to meet:

• Credit score: Ideally, your credit score should be at least 580 to be considered for the lower 3.5% down payment requirement. A FICO as low as 500 will still be considered for approval, however a larger down payment of up to 10% may be required.
• Down payment: A minimum 3.5% down payment is required for Kansas FHA loans.
• Debt-to-income ratio (DTI):  This number is a simple calculation of your gross monthly income, prior to taxes, that goes toward paying off debts and bills. With a Kansas FHA loan, a DTI as high as 57% will be considered. However, keep in mind that a lower DTI can help you qualify for a lower rate and better terms.
• Steady employment and income: Proof of two years of consistent employment history is required. There is no minimum amount of income from this employment; consistency is what lenders are looking for.
• Property requirements: While house hunting, you’ll need to know the respective county’s FHA loan limit and keep in mind the condition standards set by the FHA to ensure that the home is safe, sound, and structurally secure.

We recommend downloading the Griffin Gold app to monitor your credit, get tips to boost your credit score, track your finances and bills, and build an action plan to secure an FHA loan approval for your dream home.

In Kansas, the FHA loan limit statewide is currently $498,257 for a single-family home. So whether you’re applying for an FHA loan in sprawling Kansas City or charming Abilene, the limit is the same.

These FHA loan limits are set by HUD, and are based on the median home prices in each unique county or population area, so the limits are subject to re-evaluation over the years as home values rise and fall. You are able to purchase a home that exceeds the local FHA loan limit, but you’ll have to cover the difference between the loan limit and the purchase price with a down payment.

Because Griffin Funding specializes in Kansas FHA loans, we’ve made the application process as straightforward as possible. Here are the basic steps:

1. Check your eligibility: Make sure your credit score is at least 500 (though 580 or higher is preferred). You’ll also need to prove at least two years of steady income and employment, and a DTI of no higher than 57% (45% or lower is preferred).
2. Gather the required documents: Prepare your bank statements, tax returns, proof of employment history and pay stubs, and your government-issued identification.
3. Get pre-approved: Reach out to Griffin Funding to begin the pre-approval process. You can use our online application or call us to apply over the phone.
4. Begin house hunting: Once you’ve been pre-approved for a mortgage, begin working with a real estate agent to find a home that meets Kansas FHA loan requirements while keeping within your pre-approved amount.
5. Approval and closing: Once you’ve found the perfect home, submit your official loan application to secure funds and close the deal. Our mortgage professionals will be there every step of the way to walk you through the process and answer any questions.

If you’ve had difficulty securing a mortgage approval due to limited credit history, past financial hardships, or the lack of a sizable down payment, an FHA loan in Kansas may be a fantastic option – especially if you’re a first-time home buyer or are just out of school.

Conventional bank loans heavily favor low-risk borrowers with low debt, high income, and large down payments; this leaves a significant amount of the population without financing to buy a home. FHA loans provide opportunities for more people to realize their dream of homeownership, all while offering very competitive interest rates, low down payment requirements, and flexible credit criteria.

Not every lender specializes in Kansas FHA loans. Apply now with Griffin Funding to see what working with an experienced FHA lender in Kansas can do to help make your dream of homeownership a reality. Our dedicated team of loan officers is standing by to answer your questions and help you find the right financing option for your needs.