Kansas City · Kansas & Missouri

FHA loans in Kansas City, for your first home or your next.

An FHA loan can be an excellent choice for buying a home.

I'm Mike Baker, owner of The Rate Shop. I'll help you understand whether FHA financing fits your credit, budget and plans, then compare the costs and monthly payment with your other options.

Schedule a call with Mike

Prefer a quick conversation? Call or text me at 913-213-3335.

Hi, I'm Mike.I've been originating mortgages since 2009. You'll work directly with me from our first conversation through closing. I'm available nights and weekends when questions come up.

Let's clear up the label

FHA isn't only for first-time buyers.

Buying another home? Having used FHA before doesn't automatically rule it out for your next purchase. First-time and repeat buyers can qualify, subject to FHA's eligibility and occupancy requirements.

An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD. A lender makes the loan; FHA provides mortgage insurance to the lender.

I don't view FHA as a second-class loan. It can be an excellent choice when the qualifications, costs and payment fit the buyer. You deserve to understand that choice before deciding.

Why I may recommend FHA

Credit flexibility can make a meaningful difference.

A credit score alone doesn't decide the loan. I compare how your full financial picture fits the available programs and lenders.

Interest-rate pricing

In the comparisons I run for clients, FHA often offers a lower interest rate, and lower credit scores may have less impact on the rate than with conventional financing. We'll check your actual options.

Past credit issues

FHA may offer more flexibility around some past credit problems. What happened, how recently it happened and the rest of your credit history still matter. We'll review the details together.

Monthly debts

FHA may allow a higher debt-to-income ratio than conventional financing. That can matter even with a strong credit score. We'll also discuss the payment you feel comfortable carrying.

See where the money goes

FHA mortgage insurance, explained simply.

Most FHA purchase loans have two mortgage insurance premiums. I'll show you both in the numbers so you can see how they affect the loan balance and monthly payment.

The upfront premium

The upfront mortgage insurance premium, or UFMIP, can be rolled into the loan. When financed, it increases the loan balance instead of requiring that premium to be paid separately in cash at closing.

It is still a cost of the loan. I'll show you where it's included.

The monthly premium

FHA's annual mortgage insurance premium is collected in monthly installments. It serves a similar purpose to conventional PMI, but its cost and cancellation rules work differently.

We'll include it with principal, interest, property taxes and homeowners insurance when comparing your payment.

With a low-down-payment FHA purchase loan, monthly mortgage insurance generally lasts for the loan's full term. With at least 10% down, it generally lasts 11 years. It doesn't follow conventional PMI's equity-based cancellation rules.

HUD: How FHA mortgage insurance works

Plan for more than the down payment

What will you need to buy?

Qualified buyers may be able to purchase with as little as 3.5% down. The amount you need also includes closing costs and prepaid expenses, such as homeowners insurance and funds for an escrow account.

We'll compare the cash needed to close, your complete monthly payment and the savings you'd have afterward. A loan approval is one part of the decision; feeling comfortable with the numbers matters, too.

The home matters, too

Single-family homes and owner-occupied properties with up to four units.

I offer FHA financing for eligible single-family homes, duplexes, triplexes and fourplexes. For a two- to four-unit purchase, you'll need to live in one of the units and meet the applicable property and loan requirements.

We'll review the property you're considering and the FHA loan limit for its location and number of units before settling on a financing plan.

Education comes first

Let's compare FHA with your other options.

I grew up in a family of educators, and that shapes how I work. We start with your questions and goals, then compare the upfront costs and full monthly payment of the options that fit.

After our initial call, I record a personal video walking through the recommended loan options and numbers, line by line. You'll see the down payment, closing costs, prepaids and payment breakdown, with time to ask more questions.

The better fit is usually much clearer once the numbers are in front of you.

Your next home starts with a conversation

Let's see whether FHA fits your plans.

Schedule a call so we have time for your questions. We'll look at your situation, discuss the numbers and help you feel comfortable with the next step.