Texas FHA Home Purchase Loans

FHA loans are available for Texas or would-be residents looking to buy a house in the state. More often than not, FHA provides options for those who would otherwise not qualify for conventional mortgage loans. Not all banks and mortgage lenders offer FHA loans. A lender must have a Direct Endorsement and go through a comprehensive HUD approval process. Contrary to popular belief, FHA does not directly provide the loan. The Federal Housing Administration (FHA) insures the loans to improve housing standards and conditions.

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Types of FHA Purchase Loans

FHA 203(b)

The FHA 203b Home Loan Program is the most common and widely used FHA purchase loan program. Standard FHA loan guidelines apply with a minimum down payment requirement of 3.5% of the Sales Price. Gift funds are allowed to be used as a down payment by prospective homeowners. They can finance up to a maximum loan-to-value (LTV) of 96.50%. Eligible properties can be new or existing one-to-four single-family unit structures. They can be a house, condo, or townhouse in either urban or rural areas.

The County specifies the maximum loan amount allowed as there are limits on how much an FHA 203b loan will be in certain areas.
We are offering loan term either 15 or 20 through 30 years fixed rate or Adjustable Rate: 3/1 and 5/1 – 30 years. Most homebuyers opt for the 30-year term for lower monthly payments.

FHA 203(k)

The FHA 203k loan program is the type of loan where the property will require or call for repairs. This allows the home buyer to get the money to make necessary repairs included in the financed loan amount. The borrower typically borrows the sum for the Sales Price plus the estimated costs of repair.

There are two (2) types of FHA 203k mortgage loans available: (1) Standard Program, (2) Limited Program. Each one of them has its distinct features, benefits, and guidelines. On Standard 203k, the cost of repair must be at least $35,000 and up to the loan limit as dictated by the county. For Limited 203k, the repair must be at least $5,000 and not exceed $35,000.

Eligible properties are one-to-four single-family homes that have been completed for at least a year. You can buy a house that’s been torn down as long as most of the existing foundation structures are still in place or are in good condition. Every property has to qualify as an FHA-approved property under the FHA home loan requirements.
The County’s particular maximum loan requirements will apply to all 203k home purchase loans. Terms are for 15 or 30 years, although most 203k borrowers find that a 30-year term is the most advantageous due to lower monthly payments.

HUD Section 184 - Native American Home Loan

The HUD 184 Native American Home Loan Program in Texas provides a specialized mortgage solution for Native Americans, allowing them to become homeowners through flexible qualifying requirements and a variety of benefits. Its unique combination of reduced down payments, flexible underwriting, and no PMI makes it an excellent solution for qualified individuals seeking financial stability through homeownership.

Prospective homebuyers can make informed decisions and make their dream of buying a home a reality by understanding the program’s complexities, notably surrounding eligibility requirements, benefits, and the home loan eligibility procedure.

Mortgage Insurance:

All FHA loans will require Mortgage Insurance Premium (MIP). Mortgage Insurance protects the lenders in the event of future loan default. This mortgage insurance cost is the sole responsibility and shouldered by the borrower. There is an upfront mortgage insurance premium (UFMIP) which is equal to 1.75% added to the loan amount or can be paid by the borrower at closing. The monthly mortgage insurance premium (MIP) is calculated based upon: (a) the loan term, and (b) loan-to-value. The mortgage insurance premium applies for the entire term of the loan, regardless of term or amortization type or loan-to-value (LTV).

FHA Loans Help Make Home Ownership 

Possible For a Wider Range of People.

FHA Loans in Texas

An FHA Loan Specialist Ready To Help You

Our FHA Loan Specialists are always available to help you and answer any questions.  You may contact a dedicated FHA Loan Specialist through our website or by calling us directly. You may also chat with us to get a quick answer to your questions.

FHA Loans in Texas

We Make The FHA Loan Process Quick & Easy

Lenders often times will steer their clients away from an FHA loan due to their inexperience with the program.  FHA Loans are a great source of funding for our clients.  We share our knowledge and experience with FHA loans, making it easier for borrowers.

FHA Loans in Texas

FHA Approved Lender

The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. We are FHA-approved and designated as a “Full Eagle” FHA mortgage lender offering FHA-insured home loans in Texas.