Texas FHA Loans
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What is an FHA Loan?
An FHA-insured loan is a mortgage backed by the federal government and insured by the Federal Housing Administration under the authority of the Housing and Urban Development, commonly known as HUD. The mortgage is originated by FHA-approved lenders. They are designed for low- to moderate-income borrowers, requires a lower minimum down payment requirement and credit scores as compared to conventional mortgages.
The Federal Housing Administration or FHA does not extend and will not offer you with a mortgage loan; it only provides mortgage insurance for the loan you get from a mortgage lender who is FHA approved.
This government-backed insurance is guaranteed to protect the lender against default by the homeowner. Under the terms of FHA insurance, any FHA approved mortgage lender can make a claim against any loss incurred through default of loan repayments. This US government program does not cost American taxpayers any money. All insurance money collected through the program are kept in a single operating account. FHA provides different types of mortgage insurance, according to need, and offers a range of insurance for first-time homebuyers, for multifamily homes, for refinancing and for other types of mortgage. The insurance coverage is often referred to as the “Mortgage Insurance Premium” or MIP.
The Federal Housing Administration was created by the National Housing Act of 1934. Its goal is to improve the housing standards and conditions, provide sufficient financing for homes through the insurance of mortgage loans, and to stabilize the mortgage market.
Details and additional information about FHA loans, guidelines and requirements are readily available by contacting our FHA Home Loan Specialist at 800-854-4142.
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.
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. 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.
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Capital Home Mortgage Team
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Company, Inc. NMLS #3277
6131 Orangethorpe Avenue, Ste 500
Buena Park, CA 90620