FHA Loans in Overland Park, KS: 3.5% Down & 620 FICO Minimum

The FHA loan is one of the most powerful tools available to homebuyers in Overland Park, especially for those navigating the competitive Johnson County market for the first time or seeking the flexibility of a government-backed loan. Backed by the Federal Housing Administration, these loans simplify qualification by offering relaxed credit standards and lower down payment requirements compared to conventional mortgages.

At Metropolitan Mortgage, we specialize in maximizing your FHA benefits to ensure a smooth purchase in highly competitive areas like Overland Park and the surrounding Kansas City metro.

💰 Key Benefits of an FHA Loan in Overland Park

FHA loans are designed to make homeownership accessible by lowering the financial barrier to entry, particularly the down payment and credit hurdle.

• Low Down Payment: Requires only 3.5% down for borrowers with a minimum 620 FICO credit score.

• Flexible Credit Standards: While many lenders require a 680 FICO for Conventional loans, FHA is often available to borrowers with credit scores starting at 620 FICO (Metropolitan Mortgage Minimum).

• Higher Debt-to-Income (DTI) Ratios: FHA is generally more forgiving regarding the amount of debt you carry, allowing slightly higher DTI ratios than conventional loans.

• Use of Down Payment Assistance (DPA): FHA loans are frequently combined with state or local DPA programs, such as those offered by the Kansas Housing Resources Corporation (KHRC), which can cover the entire 3.5% down payment and closing costs.

FHA Loan Limits in Johnson County, KS

The FHA limits the maximum loan amount to ensure the program only serves moderate-cost areas. The FHA Loan Limit for a single-family home in Johnson County, KS (including Overland Park) is currently set at $498,257 (as of 2025). This limit covers the vast majority of homes in the Overland Park market.

✅ FHA Loan Eligibility and Requirements

To secure an FHA loan for a property in Overland Park, buyers need to meet the following key criteria:

1. Credit Score: A minimum FICO score of 620 is required by Metropolitan Mortgage to qualify for the 3.5% down payment option.

2. Down Payment: A minimum of 3.5% of the purchase price is required, which can come from savings, a gift, or a Down Payment Assistance (DPA) program.

3. Property Type: The home must be your primary residence and meet FHA Minimum Property Standards (MPS) during the appraisal.

4. Mortgage Insurance (MIP): Unlike Conventional loans (which use PMI), FHA requires two types of mortgage insurance premium (MIP):

   • Upfront MIP (UFMIP): A one-time charge of 1.75% of the loan amount, typically rolled into the loan balance.

   • Annual MIP: Paid monthly, this premium is required for the entire life of the loan if your down payment is less than 10%.

FHA vs. Conventional: Making the Right Choice

While FHA offers lower upfront costs, borrowers with a credit score over 700 and 5% down may benefit from a Conventional Loan, as Conventional PMI can be canceled once 20% equity is reached, potentially lowering your long-term monthly payment. To see how these programs stack up against local assistance grants, review our comprehensive list of First-Time Homebuyer Programs in Overland Park, KS.

For general FHA requirements, national guidelines, and a detailed look at the core program, please visit our main FHA Loan Programs Hub.

🚀 Ready to Buy with an FHA Loan?

Our team manages the entire FHA process in-house, ensuring we meet all Johnson County-specific requirements and FHA deadlines for a smooth closing. We provide same-day pre-approval detailing your exact FHA purchasing power.

Next Steps:

• Calculate Affordability: Use our tools to determine your maximum FHA loan amount within the Johnson County limit.

• Gather Documents: Be prepared with two years of tax returns, W-2s, and bank statements.

• Get Pre-Approved: Secure an FHA-specific pre-approval letter to strengthen your offer on a home in Overland Park.

Work with the local experts who specialize in FHA, VA, and Conventional financing.

To explore rates, start your specialized FHA pre-approval, and connect with a dedicated FHA loan officer, visit our main Overland Park Mortgage Lenders hub.