Mortgage rates are falling in Kansas City and surrounding areas.

That is great news for both potential home buyers and current homeowners.

Not only are mortgage rates approaching levels not seen in several years, but the U.S. Government is lending a hand to homeowners and potential buyers. A number of federally funded homebuyer programs are helping lenders finance people who might otherwise not have the credit or equity to buy homes.

Whether you are a first-time home buyer or someone interested in refinancing their home, right now is a great time to take a look at the Kansas City real estate market.

Mortgage Rates in Kansas City Approaching Interest Rates of 10-year U.S. Treasury Notes

The Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Department of Veterans Affairs (DVA) are all offering homebuyer programs.

The majority of the programs are geared toward first-time buyers. However, because of the federal government’s push to lower mortgage rates, it is also possible for current homeowners to refinance their homes under more attractive terms.

The catalysts behind the federal programs are U.S. Treasury Notes. With the interest rate of treasury notes high, the federal government is able to assist banks with programs that allow for the financing of homeowners with poor credit. But again, the low mortgage rates benefit all homeowners, both future and current.

FHA Reduces Credit Score “Overlays” to Entice Buyers

In November of 2018, the FHA announced that it would reduce or remove many of the credit score “overlays” that hinder first-time home buyers and potential home buyers with less than stellar credit scores.

Additionally, the FHA announced that it would continue with its current policy of lending to buyers while asking them to put down as low as 3.5 percent of the principal of the loan.

USDA Single Family Housing Guaranteed Loan Program

Encouraging lenders to loan money to first-time buyers and buyers with poor credit scores, the USDA’s Single-Family Housing Loan Program guarantees to cover 90 percent of the cost of a home should the buyer default.

People who meet income-eligibility requirements, agree to personally occupy the dwelling as their primary residence, demonstrate a willingness to meet credit obligations in a timely manner may be eligible for the USDA program.

Department of Veterans Affairs Guaranteed Loan Program

Like the SDA’s Single-Family Housing Loan Program, the DVA’s Home Loan Program guarantees a portion of the loans provided by private financiers. By guaranteeing part of the loan, banks and lenders can offer loans to veterans under more favorable terms.

If you or someone you know is in the market for a home in the Kansas City area, call or email A1 Mortgage to find out more about current mortgage rates and home loan opportunities.