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 Lender

How Do I Qualify For A Texas FHA Loan?

To qualify for a Texas FHA loan, a borrower must meet specific eligibility requirements. They must have at a minimum:
  • Acceptable credit profile and a FICO score of 580;
  • Have at least a 3.5% down payment;
  • Ability to repay the mortgage as set forth by HUD guidelines and meet the debt-to-income ratio requirement.

Borrowers applying for an FHA-insured loan must have at least a 580 middle FICO score. Those whose mid-FICO scores are below 580 but not lower than 500 may still be eligible for an FHA-insured loan as long as they have at least 10% to put down. Certain restrictions will apply, but it is still possible to qualify with scores under 580.

How Do I Qualify For A Texas FHA Loan?

To qualify for a Texas FHA loan, a borrower must meet specific eligibility requirements. They must have at a minimum:
  • Acceptable credit profile and a FICO score of 580;
  • Have at least a 3.5% down payment;
  • Ability to repay the mortgage as set forth by HUD guidelines and meet the debt-to-income ratio requirement.

Borrowers applying for an FHA-insured loan must have at least a 580 middle FICO score. Those whose mid-FICO scores are below 580 but not lower than 500 may still be eligible for an FHA-insured loan as long as they have at least 10% to put down. Certain restrictions will apply, but it is still possible to qualify with scores under 580.

Benefits of FHA Loan

A borrower who has gone through the requirements listed above can qualify for an FHA loan. Credit, income, and assets determine eligibility for an FHA home loan. Applicants will go through the process of verification and must submit all necessary documents to the lender. The Federal Housing Administration (FHA) insures the loan made by banks and other private institutions. The first thing that every prospective borrower needs to do is consult with an FHA-approved lender. An FHA Home Loan Specialist will do an analysis of the borrower’s credibility and ability to pay back. This is a simple pre-qualification process. The borrower can take it one step further by opting to be pre-approved. This process will require documentation of income and assets required to move forward with the loan.

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. 

get approved for an FHA loan

Benefits of FHA Loan

A borrower who has gone through the requirements listed above can qualify for an FHA loan. Credit, income, and assets determine eligibility for an FHA home loan. Applicants will go through the process of verification and must submit all necessary documents to the lender. The Federal Housing Administration (FHA) insures the loan made by banks and other private institutions. The first thing that every prospective borrower needs to do is consult with an FHA-approved lender. An FHA Home Loan Specialist will do an analysis of the borrower’s credibility and ability to pay back. This is a simple pre-qualification process. The borrower can take it one step further by opting to be pre-approved. This process will require documentation of income and assets required to move forward with the loan.

FHA Eligible Properties

An FHA loan can only be used for a primary residence; the property must be owner-occupied and not an investment or rental property. Any 1 – 4 unit properties, including condominiums, manufactured homes, modular homes, and planned urban developments, are eligible for an FHA-insured loan. However, there are specific guidelines for properties with three or four units and manufactured homes, Condominiums, and PUDs.

We can get an automated underwriting approval from either Fannie Mae or Freddie Mac and go over the borrower’s requirements and additional required documentation. This will ensure that the borrower is approved per FHA guidelines. We’ll get you prequalified or preapproved for a specific amount so you can start shopping for your dream home.

Apply For An FHA Loan

You may initiate an FHA loan application online, over the phone, or in person. FHA loans are insured by the Federal Housing Administration, an arm of Housing and Urban Development commonly known as HUD.  You may apply online using the “Apply Online” button on this site. You may also call 800-854-4142 to apply over the phone. Our FHA Loan Specialists are available to take your call. We are an FHA-approved lender and the best FHA lender in Texas. Please feel free to contact us at 800-854-4142 for more information or should you have additional questions on how to qualify for an FHA loan.
FHA Loan 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 Loan 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 Loan 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

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