How do I pre-qualify for an FHA Loan in Texas?
To qualify for a Texas FHA loan, a borrower must meet certain eligibility requirements. They must have at a minimum;
- Acceptable credit profile;
- Have at least 3.5% down payment;
- Ability to repay the mortgage as set forth by HUD guideline.
Borrowers applying for an FHA insured loan must have at least a 580 middle FICO score. Compared to any other loan program, FHA is the easiest to qualify for, credit-wise. Those whose mid-FICO scores are below 580 but not lower than 500 can still qualify for an FHA-insured loan as long as they have at least 10% to put down.
A down payment of 3.5% is required on all FHA transactions. The best part of all, the down payment can come from a family member as a gift towards the purchase of the house. The donor has to provide the source of the money being used as a “Gift Fund” to the borrower.
The debt-to-income requirement allows the borrower to have a higher back-end ratio as compared to other loan programs. FHA will go as high as 55% DTI; no other loan program in the market subscribes to this rule but FHA. AMCAP Mortgage can go as high as 57% back-end ratio to qualified borrowers.
Contrary to popular belief, credit alone does not guarantee a mortgage loan. Credit, in conjunction with, income and borrower’s assets determine affordability and the total home loan to be extended.
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.
AMCAP Mortgage can get an automated underwriting approval from either Fannie Mae or Freddie Mac and go over the requirements and/or additional required documentation with the borrower. This will ensure that the borrower actually is approved per FHA guidelines.
For more information, call us at 281-860-2533.
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. Amcap Mortgage Ltd. is an FHA approved lender specializing in FHA Loans in Texas.