Texas FHA Loans

Close on time, Credit Scores as low as 500

Texas FHA Loans

Close on time, Credit Scores as low as 500

TexasFHA.org

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FHA and First Time Home Buyers

An FHA loan is one of the easiest mortgage loans to qualify for. Due to the program’s low down payment requirement, FHA loans mainly appeal a great deal to first-time home buyers. A First Time Home Buyer is defined as anybody who hasn’t bought, owned, or have any ownership interest in a property in the last three years. A first-time homeowner, on the other hand, is somebody who hasn’t owned a home before. Buying a home for the first time can be an exciting experience, yet overwhelming for the average person. It is one of the biggest financial decisions a person can make in a lifetime. There are lots of decisions to make along the way to being a homeowner. Plenty of first-time home buyers put off the home buying process simply because they find it daunting and mind-blogging.

FHA and First Time Home Buyers

An FHA loan is one of the easiest mortgage loans to qualify for. Due to the program’s low down payment requirement, FHA loans mainly appeal a great deal to first-time home buyers. A First Time Home Buyer is defined as anybody who hasn’t bought, owned, or have any ownership interest in a property in the last three years. A first-time homeowner, on the other hand, is somebody who hasn’t owned a home before.

Buying a home for the first time can be an exciting experience, yet overwhelming for the average person. It is one of the biggest financial decisions a person can make in a lifetime. There are lots of decisions to make along the way to being a homeowner. Plenty of first-time home buyers put off the home buying process simply because they find it daunting and mind-blogging.

First Time Home Buyer Loans

An FHA loan is great for people who may have low credit scores, which would usually stop them from getting a loan from a conventional lender. Although FHA only requires a middle FICO score of 580 to qualify, most lenders require a higher middle FICO score as an overlay. A standard benchmark that big commercial lenders use is 640 middle FICO, some even at 660. We are one of the few Texas mortgage lenders that originates a loan with FICO scores as low as 580.
As a matter of fact, we can extend an FHA loan to borrowers with a middle-FICO score as low as 500, as long as the borrower has at least a 10% down payment. Not only can we originate a loan with scores as low as 580 and below, but can also close it promptly. While other lenders take 45 – 60 days to close a file, our professionals can close a file in 30 days or less. This is critical, especially for first-time home buyers as this is their first time to experience the home buying process. We want the whole transaction to be as pleasant and smooth as possible.
The Borrower is only required to come up with a 3.5% down payment, and the money can be in the form of a gift from a family member. The source of the down payment can be a gift not only from a family member but also from a charitable institution or State home buyers program, such as the Down Payment Assistance Program, etc. This helps tremendously and eases the burden on the borrower if a borrower is struggling to come up with the necessary money for a down payment.
With a relatively low credit score requirement, combined with a minimal down payment needed, an FHA loan is ideal for first-time homebuyers looking to get into a home, compared to other loan programs available in the market. A conventional loan counterpart will require at least a 5% down payment from the same borrower, not to mention, a higher middle FICO score requirement to qualify.

FHA Loan Benefits and Advantages

Compared to conventional loans, FHA carries a lower interest rate. Since HUD insures the loan against future default, it is offered a lower rate.

Minimum requirement for an FHA loan is only 3.5% compared to 5% on conventional loans. The borrower can also get a “gift” from family members to be used as a down payment on the house.

Required minimum credit score for an FHA loan is lower compared to the conventional counterpart. TexasFHA.org will extend an FHA loan to borrowers with middle FICO scores as low as 580. 

FHA loans can go as high as 57% debt-to-income (DTI) ratio with an automated underwriting system approval. Conventional loans can only go as high as 45% DTI. What does this mean? This allows the home buyer to purchase a higher sales price home. Lots of times, the higher DTI decides if a borrower qualifies for a home loan or not. 

First Time Home Buyer Loans                                    

An FHA loan is great for people who may have low credit scores, which would usually stop them from getting a loan from a conventional lender. Although FHA only requires a middle FICO score of 580 to qualify, most lenders require a higher middle FICO score as an overlay. A standard benchmark that big commercial lenders use is 640 middle FICO, some even at 660. We are one of the few Texas mortgage lenders that originates a loan with FICO scores as low as 580. As a matter of fact, we can extend an FHA loan to borrowers with a middle-FICO score as low as 500, as long as the borrower has at least a 10% down payment. Not only can we originate a loan with scores as low as 580 and below, but can also close it promptly. While other lenders take 45 – 60 days to close a file, our professionals can close a file in 30 days or less. This is critical, especially for first-time home buyers as this is their first time to experience the home buying process. We want the whole transaction to be as pleasant and smooth as possible.

The Borrower is only required to come up with a 3.5% down payment, and the money can be in the form of a gift from a family member. The source of the down payment can be a gift not only from a family member but also from a charitable institution or State home buyers program, such as the Down Payment Assistance Program, etc. This helps tremendously and eases the burden on the borrower if a borrower is struggling to come up with the necessary money for a down payment.

With a relatively low credit score requirement, combined with a minimal down payment needed, an FHA loan is ideal for first-time homebuyers looking to get into a home, compared to other loan programs available in the market. A conventional loan counterpart will require at least a 5% down payment from the same borrower, not to mention, a higher middle FICO score requirement to qualify.

FHA Loan Benefits and Advantages

Compared to conventional loans, FHA carries a lower interest rate. Since HUD insures the loan against future default, it is offered a lower rate.

Minimum requirement for an FHA loan is only 3.5% compared to 5% on conventional loans. The borrower can also get a “gift” from family members to be used as a down payment on the house.

Required minimum credit score for an FHA loan is lower compared to the conventional counterpart. TexasFHA.org will extend an FHA loan to borrowers with middle FICO scores as low as 580. 

FHA loans can go as high as 57% debt-to-income (DTI) ratio with an automated underwriting system approval. Conventional loans can only go as high as 45% DTI. What does this mean? This allows the home buyer to purchase a higher sales price home. Lots of times, the higher DTI decides if a borrower qualifies for a home loan or not. 

First Time Home Buyer Programs

According to a survey by Apartment List, a majority of millennial renters want to buy a home. The common denominator for all of them is the lack of funds; they all say they cannot afford to buy a home due to the lack of financial savings for a down payment on a new home. What most people don’t realize is that there are first-time homebuyer programs and grants that offer financial assistance to qualified buyers.

First Time Home Buyer Grants

Contact our FHA Home Loan Specialists at 800-854-4142 for additional information or use the tools available on this website.
FHA Loan Specialist 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 Fast Loan Process 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 Approved Lender 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.

FHA Loans Help Make Home Ownership 

Possible For a Wider Range of People.

Connect With Us

Address

2300 Highland Village Rd., Ste 2218
Highland Village, TX 75077

Phone

800-854-4142

Email Address

info@texasfha.org

business hours

Monday - Friday: 9:00 am to 6:00 pm Saturday: 9:00 am to 12:00 pm