FHA lenders in Texas

Millions of Texans are taking advantage of FHA loans each and every day.

Are you needing to buy a home but just don’t have 20% to put down?

Do you have less-than-perfect credit and are simply looking for a way to qualify with less hassles?

Is it your first time buying a home and have tons of questions and just don’t know where to start?

Well, you’ve come to the right place!

At FHA Loan Texas.com, we know how important it is to make your home affordable and this is why we have become the leading experts in Texas on the FHA loan program.

As an FHA approved lender in Texas that has over 75 combined years of experience in FHA loans, our team of FHA Loan specialists is focused on making everything as easy as possible for you.

This is why we made a site dedicating to giving you as much  free information on FHA  because we know how confusing it can be at times and at the end of the day, it’s important to give the answers you are looking for.

Not only do we offer the best rates and most competitive closing costs, but in addition, we have the experience and knowledge to make your home buying or refinancing a breeze.

We’re always happy to chat about your situation and give you helpful advice on what your next steps should be if you haven’t been down this road before.

What Are the Benefits of an FHA Loan?

fha home loans texasDid you know that over 46% of first time home buyers use an FHA Loan when they purchase their first home?

In today’s economy, FHA insured mortgage loans continue to help millions of people like yourself buy their homes with very flexible terms in order to make home ownership possible.

Here are some of the top benefits of FHA financing:

  • Are Easier to Qualify for – because they’re insured by the federal government, lenders are more likely to give you the kind of loan that you need.
  • Have a Low Down Payment – Unlike most other types of mortgage financing, FHA loans in Texas require a 3.5% down-payment which makes it easier for people to own homes.
  • Allow Lower Credit Borrowers to Qualify – because FHA loans are backed by the government, people with a “less than perfect” credit history have an easier time getting approved for an FHA loan
  • Have Better Interest Rates – Since the Department of Housing and Urban Development insures these loans against default, FHA loans usually have better interest rates than most conventional mortgage loans.

What is an FHA Loan?

what is an fha loanWith so many resources online these days, it isn’t easy trying to find out straight-forward answers on how FHA loans work.

Here is what you need to know in plain English.

An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA).

Back in the 1930′s during The Great Depression, the FHA loan was created to stimulate the housing market and made buying homes more accessible and affordable to people.

FHA loans are usually the easiest type of mortgage to qualify for because of the low down payment option (3.5%), lower interest rates, and easier qualification standards. When you compare FHA to a traditional conventional mortgage, it’s honestly like comparing apples to oranges.

FHA doesn’t lend the money, the FHA approved lenders do.

Every FHA loan is backed by the FHA in case of default which is why the guidelines are a little bit looser than other types of home loans out there.

Are FHA Loans Just for First Time Home Buyers?

fha first time homebuyers texasFHA loans are not just for first time home buyers – they are for anyone that is looking to buy or refinance a home that may not have the best credit or a large down payment.

Even though FHA loans have been called “first time home buyer loans”, the reality is that anyone can take advantage of them.

The reason they have adopted this name throughout the years is because most people that are buying a home for the first time are looking for the easiest and most hassle free way to get approved for a mortgage loan.

With FHA’s relaxed guidelines and credit requirements, most people will choose FHA based on those factors alone.

What Are the FHA Loan Requirements?

fha loan requirements texas

These days, qualifying for a home mortgage loan can be near impossible without a decent down payment and a moderate credit score.

Since 1934, the Federal Housing Administration has stepped in to help potential homeowners like you realize the dream of home ownership.

There are fewer restrictions for an FHA loan in comparison to a conventional mortgage loan as the requirements for an FHA loan are much more lenient.

Below, you’ll see the basic FHA loan qualification requirements, however if you have a unique situation or have some questions, we’ll be happy to help and guide you in the right direction.

  • Employment – Proven and documented employment of at least 2 years.
  • Credit – Ideally you must have a credit score of at least a 620, but there are instances where you can get approved all the way down to 580.
  • Debt – Debt to Income ratio of around 45-50%.
  • Down Payment – You must have at least a 3.5% down-payment. If you do not, a “gift” is acceptable as well as long as we can document it.
  • Occupancy – You must live in the home you are wanting to buy – no investment properties or second homes.
  • Property Type – Single-family homes, condominiums, and 2-4 unit properties are eligible.
  • Bankruptcy – Depending on the type of Bankruptcy filed, you must usually wait at least 1-2 years before you apply for an FHA loan. If there were extenuating circumstances out of your control however, there are some exceptions.
  • Foreclosure – If you’ve had a foreclosure in the past, you must wait at least 3 years to apply

Curious to see if you qualify?

The first step is to check FHA eligibility.

This will give help give a good idea as to where you stand, what types of rates you can get, and how much of a home you can buy.

It takes less than 30 seconds and is 100% free.