FHA Loans in Kansas
Buying your first home is a huge step, both financially and emotionally. Homeownership has long been considered the American dream, and while housing prices in the last ten years have made that dream a more distant reality, the current condition of the economy might just represent your best chance to take this exciting step in your life. Since the economy is slowing down, house prices have no choice but to follow suit, and sellers are willing to negotiate terms and prices. Beginning to consider buying your Kansas home? You might want to consider a Kansas FHA loan to help finance your dream.
Why Choose FHA?
The Kansas FHA loan program, administered by the Federal Housing Administration, is designed to help first time homebuyers obtain easier financing for their purchase. Chances are, if you go to a bank and ask for a loan, you'll have to go through an extensive credit check and will have to put down twenty percent of the purchase price of your home as a down payment.
The FHA program recognizes that many buyers have less than perfect credit scores (and in fact, the FHA even permits buyers to have bankrupcties on their records as long as perfect credit has been maintained since) or have not been able to save enough money for a large down payment on a home, and to help make loans more attainable, the Kansas FHA loan program provides a guaranty for each loan to the bank who executes the loan. That way, banks feel more comfortable about the risk they're undertaking and are more likely to make loan to Kansas FHA loan customers.
Kansas FHA Loan Limits
If the Kansas FHA loan program sounds like one you'd like to pursue, keep in mind that there are limits to the amount of money the program will loan. Loan limits are set each year by the Federal Housing Administration and are based on the median housing prices around the country. However, those who live in higher cost of living areas need not dispair- the limit is adjusted for cost of living in some counties and cities in order to ensure that even those in high cost of living areas can take advantage of the FHA program.
The 2009 loan limit for all counties and cities in Kansas is $271,050 (single family dwelling), and potential borrowers should check with their lenders for limits for multi-family dwellings since limits vary on these types of properties.