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St. Louis Real Estate Search

 

St Louis Mortgage Rate Update; FHA good alternative for many home buyers

In this tighter credit environment, FHA remains to be a great alternative for buyers with limited resources for a down payment and closing costs or past credit problems. Underwriting guidelines are more lenient than conventional guidelines.

  • Minimum funds required from the buyer are 3.5% of sales price. 100% of the buyers’ contribution can be in the form of a gift.
  • No reserves are required.
  • The seller can contribute 6% of the sales price to closing costs, pre-paids, or points.
  • Debt to Income ratios are 31%/43% (A ratio exceeding 43 percent may be acceptable with
  • compensating factors)
  • In most cases, underwriters do not have to count any debt with 10 or less payments remaining.
  • Non-permanent resident aliens are eligible for maximum financing.
  • A Chapter 7 bankruptcy will not disqualify a borrower if 2 years have passed since the bankruptcy and the bankruptcy was discharged. Foreclosures, 3 years from the sale date.
  • A borrower could obtain financing during a Chapter 13 bankruptcy if 1 year has passed since the initial Chapter 13 filing, all payments have been made on time, and the court gives permission to the borrower to incur additional debt.

St. Louis MORTGAGE INTEREST RATES for November 23, 2011:

  • Conventional 30-Year Fixed 4.00%/ 4.190% APR
  • Conventional 15-Year Fixed 3.375%/ 3.565% APR
  • Conventional 5/1 ARM 2.750%/ 3.159% APR
  • FHA/VA 30 Year Fixed 3.75%/ 3.960% APR
  • Jumbo 5/1 ARM 2.875%/ 3.016% APR
  • Jumbo 15 yr Fixed 3.625%/ 3.875% APR
  • Jumbo 30 yr Fixed 4.875%/ 5.125% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

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