First Time Buyers and FHA Loans
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 appeals a great deal to first time home buyers. A First Time Home Buyer is defined as anybody who hasn’t bought a house in the last three years. A first-time homeowner, on the other hand, is somebody who hasn’t owned a home before.
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 10% down payment. Not only can they originate a loan with scores as low as 580 and below, but they can also indeed 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 3.5% down payment, and the money can be in the form of a gift from a family member. The source of 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 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 down payment.
With a relatively low credit score requirement, combined with a minimal down payment needed, an FHA loan is ideal for first time home buyers looking to get into a home, compared to other loan programs available in the market. A conventional loan counterpart will require at least 5% down payment from the same borrower, not to mention, a higher middle FICO score requirement to qualify.
Contact our FHA Home Loan Specialists for additional information or use the tools available on this website.
An FHA Loan Specialist Available 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.
We make the FHA Loan Process Quick & Easy
It’s not a secret that lenders often times will steer their clients away from an FHA loan due to their inexperience with the process. We find FHA Loans to be a great source of funding for our clients. We share our knowledge and experience with FHA loans, making it easier to get compared to conventional financing.
FHA Approved Lenders
The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. We are an FHA approved lender specializing in FHA Loans in Texas.