FHA Financing is Great Alternative; St. Louis Mortgage Interest Rate Update

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.

FHA Loan Program Highlights:

  • 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, prepaids, 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 was discharged.
  • A borrower could obtain financing during a Chapter 13 bankruptcy if at least 1 year has passed since it was filed, all Chapter 13 payments have been on time, and the court gives permission to the borrower to incur additional debt.
  • A previous principal residence or other real property that was foreclosed will not disqualify a borrower if at least 3 years have passed from the sale date.

St. Louis MORTGAGE INTEREST RATES for August 15, 2012:

  • Conventional 30-Year Fixed 3.375%/ 3.428% APR
  • Conventional 15-Year Fixed 2.75%/ 2.844% APR
  • Conventional 5/1 ARM 2.500%/ 3.335% APR
  • FHA/VA 30 Year Fixed 3.250%/ 3.332% APR
  • Jumbo 5/1 ARM 2.750%/ 2.427% APR
  • Jumbo 15 yr Fixed 3.375%/ 3.630% APR
  • Jumbo 30 yr Fixed 4.750%/ 5.010% 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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