Houston FHA Loans
Houston, Texas is the fourth largest city in the United States with a Census-estimated population of 2.3 million residents. Located in Southeast Texas near the Gulf of Mexico, the seat of Harris County, it is the largest city in the United States by total area. With a bustling economy and a community of people who stand together with a sense of camaraderie, Houston continues to be one of the best places to live not only in the state of Texas but in the entire United States.
Homes for sale in Houston are bountiful. From newly built homes to existing homes, there are plenty of choices when looking to buy a house in Houston. Are you in the market to buy a house or perhaps refinance your existing mortgage? Houston offers plenty of mortgage loan programs that will suit your particular needs.
FHA Home Loans in Houston
From first-time homebuyers to seasoned home buyers, FHA loans are the most common and widely used mortgage program in the Houston area. With the wide range of products that FHA offers, every borrower can be sure that there is an FHA loan program suitable for their situation.
We are a Texas mortgage lender that offers FHA home loan programs from borrowers with tier-1 credit to those with not-so-good credit. We offer purchase and refinance loans, from the standard 203(b) to FHA construction loans, 203(k) loans for homes that need rehabilitation, and Home Equity Conversion Mortgage aka Reverse Mortgage. We have a loan program for you and your family. Are you looking to refinance your existing mortgage to lower your rate and cut your term? FHA Rate and Term refinance program can help you with that. Are you refinancing an existing FHA loan? Our FHA streamline program will help refinance your mortgage with ease.
Mortgage Broker vs. Mortgage Lender
A mortgage broker acts as the middleman between the prospective home buyer and the mortgage lender. They prepare your loan application, qualify you for a loan, gather all the necessary documents pertaining to the loan, and can issue a pre-qualification letter. The typical mortgage broker works with several lenders and submits your file to a particular lender for them to issue the loan. In short, a mortgage broker doesn’t have the money, they look for the money to extend a home loan.
A mortgage lender is an institution that makes loans directly to a borrower. A broker doesn’t lend the money, they find a lender. Different lending institutions offer different loan programs and have the ability to fund their own loans. The Federal Housing Administration or FHA works with the Department of Housing and Urban Development, commonly known as HUD, to create requirements for lenders, thus the term “FHA-approved.”
As a direct mortgage lender, we have access to several loan programs not available in the open market. This is one of the most significant advantages of working with a direct lender. You will have a personalized service catered to your individual needs instead of a cookie-cutter program that most brokers are accustomed to.
FHA Loan Programs
We offer a wide selection of mortgages:
- 203(b) – the most widely used home loan program in the country.
- 203(k) – combines the cost of rehabilitation with the purchase price of the house.
- 203(h) – a rehab loan for disaster victims available to those affected by a calamity or natural disaster where the property is located in a federally declared major disaster federally declared major disaster areas
- Construction Loan – a construction-to-permanent loan program that converts the interim financing to a permanent long-term fixed-rate loan.
- HECM – commonly known as Reverse Mortgage, exclusive to homeowners 62-years and older.
- Streamline Refinance – used to refinance an existing FHA loan to another FHA loan. Does not need a new appraisal, a new credit report, or both.
Advantages of an FHA Loan
FHA loans have plenty of advantages over conventional loans:
- Low Down Payment – FHA loans only require a 3.5% down payment.
- Lenient Qualification Guidelines – since the federal government insures the loan against future default, the qualification criteria are less stringent than conventional loans.
- Low Credit Score Requirement – a borrower can qualify for a 3.5% down payment with credit scores as low as 580. If the borrower’s middle FICO score is less than 580 and all the way down to 500, they may still qualify but will need a 10% down payment at a minimum, and certain restrictions will apply.
- Limited Closing Costs – the closing costs for FHA loans are restricted and limited. There can be no unnecessary fees that a lender may charge the borrower.
- Sellers Concessions – FHA allows the seller to contribute up to 6% of the sales price as a concession to the buyer to cover their closing costs and prepaid items.
- Assumable Loan – the loan is assumable so the buyer can assume the seller’s original mortgage instead of getting a new loan with a higher rate, credit qualifying.
An FHA loan can make a difference in your home buying experience. Contact our FHA Loan Specialists now to get started.
Texas FHA - Houston, TX
19500 State Hwy 249, Ste 210, Houston, TX 77070 | 346-297-0516
RMLO, NMLS # 286371
19500 State Hwy 249, Ste 210
Houston, TX 77070