Texas FHA Loans
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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:
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 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.
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.
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
The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. AmCap Home Loans is an FHA-approved, and designated as a “Full Eagle” mortgage lender in Texas.
FHA Loans Help Make Home Ownership Possible For a Wider Range of People.
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NMLS # 129122
14355 Torrey Chase Blvd #B
Houston, TX 77014