FHA loans in Kansas & Missouri
FHA loans are insured by the Federal Housing Administration and are designed to make homeownership more accessible, with low down payments and flexible credit guidelines. First State Bank Mortgage offers flexible underwriting on FHA programs, and Jim will help you determine whether an FHA loan is the right fit for your purchase.
Primary Benefits of an FHA Loan
Low down payment — Purchase with as little as 3.5% down.
Flexible credit guidelines — FHA loans allow for lower credit scores, and we offer flexible underwriting on these programs.
Down payment assistance — FHA loans can be paired with eligible grant programs. Terms and restrictions vary by program.
More lenient after hardship — FHA guidelines are among the most lenient following a short sale, foreclosure, or bankruptcy.
What Is the Down Payment for an FHA Loan?
FHA loans require as little as 3.5% down, which makes them a popular choice for residential home financing. They are a strong option for first-time homebuyers, although you do not need to be a first-time buyer to qualify. You can also purchase a 2–4 unit property with as little as 3.5% down when you live in one of the units, subject to restrictions.
Why Choose an FHA Loan?
Accessible for First-Time Buyers
Lower down payment and credit requirements help many buyers purchase sooner.
Gift Funds Allowed
Down payment and closing cost funds can come from eligible gifts with proper documentation.
Multi-Unit Opportunities
Purchase a duplex, triplex, or fourplex and live in one unit with the same low down payment.
Streamline Refinance Option
Existing FHA borrowers may qualify for a simplified refinance in the future.
Why Work With Jim Yarrington?
28+ years of mortgage experience — Jim has guided Kansas City homeowners through purchases, refinances, and equity decisions for nearly three decades.
In-house underwriting — First State Bank Mortgage has its own staff of underwriters who know the guidelines, providing more flexibility and faster answers.
Personal guidance — Jim takes the time to understand each client's situation and explains every option clearly before you commit.
Local to Kansas City — Jim has called the Kansas City area home for nearly three decades and serves clients on both sides of the state line.
How the FHA Loan Process Works
Consultation — Discuss your goals, budget, and down payment options with Jim.
Pre-approval — Review your credit, income, and assets so you can shop with confidence.
Home search and offer — Find a home with your real estate agent and make an offer.
FHA appraisal — The property is appraised and reviewed against FHA property standards.
Underwriting — Our in-house underwriters review and approve your loan.
Closing — Sign your documents and receive the keys to your new home.
FHA Loan Requirements
Down payment — As little as 3.5% of the purchase price.
Credit — Flexible credit guidelines compared with many conventional programs.
Primary residence — The home must be your primary residence.
Mortgage insurance — FHA loans include an upfront and annual mortgage insurance premium.
Loan limits — FHA loan limits vary by state and county.
Common FHA Mistakes to Avoid
Moving money without documentation — Large deposits and gift funds must be documented, so talk with Jim before moving funds.
Opening new credit — Avoid new loans or credit cards during the process.
Overlooking property condition — FHA appraisals review the home's condition, so discuss any known repairs early.
Areas We Serve
Based in Overland Park, Jim serves homeowners and buyers throughout the Kansas City metro, including Johnson County, Olathe, Leawood, Lenexa, Shawnee, Prairie Village, Lee's Summit, and Kansas City, Missouri. First State Bank Mortgage lends in all 50 states, so contact Jim if your property is outside the metro.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
FHA loans require as little as 3.5% down. Eligible grant and gift funds may help cover the down payment.
Do I need to be a first-time homebuyer to get an FHA loan?
No. FHA loans are popular with first-time buyers, but anyone who qualifies can use one for a primary residence.
Can I get an FHA loan after a bankruptcy or foreclosure?
FHA guidelines are among the most lenient after a short sale, foreclosure, or bankruptcy. Waiting periods apply, and Jim can review your timeline.
Can I buy a multi-unit property with an FHA loan?
Yes. You can purchase a 2–4 unit property with as little as 3.5% down if you live in one of the units, subject to restrictions.
Do FHA loans require mortgage insurance?
Yes. FHA loans include an upfront premium and an annual premium paid monthly.
Related Loan Programs
Ready to see if an FHA loan fits your plans? Call Jim directly at 913-513-2924 or send him a message to get started.