Comments Off on New FHA Guidelines Will Make It Easier To Get Pre-Approved To Buy A Kansas City Home

The Pulse Of The Kansas City Real Estate Market

Recent changes to FHA loan guidelines will make getting approved for an FHA loan less complicated for many home buyers in Kansas City, Johnson County KS, Overland Park and the surrounding areas. One of the recent changes involves clarification to lenders on what FHA will truly allow regarding a borrower’s maximum allowable debt. This has been a grey area for many years and lenders just weren’t clear on the precise debt-to-income ratios a borrower was allowed to have. Not knowing caused some home buyers that had borderline debt to income ratios to be rejected for their loan.

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The loosened guidelines go into affect on new FHA loan starts after 4/21/14. Another change has some lenders dropping their minimum credit score requirements to complete an FHA loan. While FHA required borrowers to have a minimum 580 credit score, many lenders actually held a higher standard of a minimum 640 credit score to qualify after the mortgage crisis. Recently however, two lenders reduced the required minimum credit score, with one lowering the minimum to 600.

FHA is the largest insurer of mortgage loans in today’s real estate market, so these changes are sure to bring more home buyers into the market-place. To learn more about buying a home in the Kansas City area, contact The Jason Brown Group. We can get you with a great loan officer who can work to get you Pre-approved to buy a home. It costs nothing to get Pre-Approved and this is important first step in the exciting home buying process!

Posted by Jason Brown

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