Texas FHA Loans
Close on time, Credit Scores as low as 500
- Attractive Interest Rates
- Flexible Qualifications
- Low Down Payments
Texas FHA Loans
Close on time, Credit Scores as low as 500
- Attractive Interest Rates
- Flexible Qualifications
- Low Down Payments
Texas FHA Home Purchase Loans
FHA loans are available for Texas residents 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 must go through a comprehensive HUD approval process to do so. Contrary to popular belief, FHA does not directly offer the loan. The Federal Housing Administration (FHA) insures the loans to improve housing standards and conditions.
Texas FHA Home Purchase Loans
FHA loans are available for Texas residents 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 must go through a comprehensive HUD approval process to do so. Contrary to popular belief, FHA does not directly offer the loan. The Federal Housing Administration (FHA) insures the loans to improve housing standards and conditions.
Types of FHA Purchase Loans
203b – The FHA 203b Fixed Rate 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%.
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. Borrowers with a mid-FICO score as low as 500 can qualify for a loan, as long as they have at least 10% down payment. FHA loan approval is more relax and easy.
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.
Types of FHA Purchase Loans
203b – The FHA 203b Fixed Rate 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%.
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. Borrowers with a mid-FICO score as low as 500 can qualify for a loan, as long as they have at least 10% down payment. FHA loan approval is more relax and easy.
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.
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).
by nico2me
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).
by nico2me
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
Capital Home Mortgage Team
powered by Sun West Mortgage
Company, Inc. NMLS #3277
2300 Highland Village Rd, Ste 2218
Highland Village, TX 75077
Phone: (800)-854-4142