Checking The Pulse Of The Kansas City Real Estate Market

Guidelines definitely vary from lender to lender but a typical baseline for securing a home loan will be having at least a 3.5% down payment and a 580 minimum credit score. FHA loans require a 3.5% down payment and conventional loans (i.e. loans backed by Fannie Mae and Freddie Mac) require a 5% down payment. A typical FHA loan requires a credit score of at least 580, however home buyers with at least a 500 credit score can obtain a FHA loan IF they have a 10% down payment. Most conventional loans will require a minimum 660 credit score.

The maximum loan FHA will allow varies from one U.S. county to another and to buy a home in Kansas City, Johnson County Kansas, Overland Park and the surrounding metro area, the maximum FHA loan permitted is $271,050. The maximum Fannie Mae conventional loan is $625,500, with loans over $417,000 being subject to more stringent loan requirements than homes below $417,000. At this time, both FHA loans and conventional loans allow a seller to pay up to 3% of a buyer’s allowable closing costs. But with today’s crazy markets, the rules are changing by the day…

The rules may have changed by the time you read this post. It’s a lot for even a seasoned Kansas City real estate agent to stay on top of, so take my advice and contact a knowledgeable LOCAL lender/loan officer who can guide you through the mortgage loan process. Need a great recommendation? This is one of the important aspects of the real estate process we help Kansas City home buyers with on a daily basis. Getting with a great loan officer is more important than ever because the rate of loans not closing is increasing across the U.S. and overlooking the smallest of details can doom your real estate transaction.

Posted by Jason Brown