FHA Loan Lender Overland Park, Kansas
FHA loans let buyers purchase a home with as little as 3.5% down and more flexible credit criteria than conventional financing. If you've been told you don't qualify elsewhere, an FHA loan from Ben Yeates Fairway Mortgage may be the path forward.
How FHA Loans Work in the Kansas City Metro
FHA loans are backed by the U.S. Department of Housing and Urban Development (HUD), which means the federal government insures the loan against default. That backing is what allows lenders to approve borrowers with lower credit scores and smaller down payments than conventional loans typically require. The trade-off is mortgage insurance, specifically the mortgage insurance premium, or MIP.
What MIP Costs and Why It Exists
MIP comes in two parts: an upfront premium of 1.75% of the loan amount, paid at closing or rolled into the loan balance, and an annual premium paid monthly. The annual MIP rate depends on your loan term, loan-to-value ratio, and loan amount. Unlike private mortgage insurance (PMI) on conventional loans, FHA MIP remains on the loan for its full term if your down payment was below 10%. Buyers who put down 10% or more can have MIP removed after 11 years.
FHA Loan Limits and Credit Score Minimums for Overland Park
For 2024, the FHA loan limit for Johnson County, Kansas – which includes Overland Park – is $524,225 for a single-family home. In the Kansas City metro area, limits vary by county but fall within a similar range. To qualify with the 3.5% minimum down payment, borrowers need a credit score of at least 580. Borrowers with scores between 500 and 579 may still qualify with a 10% down payment. Ben Yeates reviews your full financial picture to find the strongest path to approval.
FHA vs. Conventional Loans Choosing the Right Fit
Both FHA and conventional loans can get you into a home, but they're built for different borrower profiles. The right choice depends on your credit score, how much you've saved, and how long you plan to stay in the home.
| Factor | FHA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 3.5% with 580+ credit score; 10% with 500–579 | As low as 3% for qualified buyers; typically 5–20% |
| Credit Score | 580 minimum for 3.5% down; 500 minimum for 10% down | Typically 620 minimum; best rates at 740+ |
| Mortgage Insurance | MIP required for the life of the loan (or 11 years with 10%+ down) | PMI required below 20% down; cancellable once equity reaches 20% |
| Best For | First-time buyers, lower credit scores, limited savings | Buyers with solid credit, established savings, or higher loan amounts |
If your credit is below 620 or you don't have a large down payment saved, FHA is often the faster path to approval. If your score is 700 or above and you can put down 10–20%, a conventional loan may cost you less overtime, especially once PMI cancels out. A free consultation with Ben Yeates maps your actual numbers against both options so you can decide with confidence.
Find Out If an FHA Loan Is Right for You
Ben Yeates at Fairway Mortgage works with first-time buyers and buyers rebuilding their credit across Overland Park and the Kansas City metro. A free consultation takes 20 minutes and gives you a clear picture of what you qualify for, what your monthly payment looks like, and what next steps make sense. No pressure, no obligation.