Texas FHA Loan
What is an FHA mortgage? For Texas home buyers or homeowners, the FHA loan program represents a valuable opportunity to achieve a mortgage solution by using either a purchase or refinance program. FHA is the short acronym for Federal Housing Administration. The U.S. Congress created the Federal Housing Administration in order for home buyers just like you to have greater access to affordable and attainable mortgages loans. This is ideal for residents of the great state of Texas.
How does the program benefit you? The FHA program does this by insuring the mortgages for owner-occupied single family and multi-family homes. Utilizing mortgage insurance premiums, the FHA program offers protection to lenders against potential losses that may result, should a homeowner default on a government insured FHA loan. In return, Texas homeowners and home buyers get great rates, along with all the security a government program affords borrowers.
FHA mortgage loans originated in Texas must be able to meet the underwriting requirements established for the program to qualify. Since 1934, the FHA program, overseen by HUD, has helped well over 34 million people achieve home ownership!
100% Loan Financing for Texas Home Buyers
Few mortgage companies in Texas are able to offer 100 percent financing. Using our USDA loan product, Texas home buyers can achieve what many competitors just don't offer today! Better still, home buyers can negotiate up to 6% seller-paid closing costs, typically resulting in a mortgage loan that has little to no out of pocket expense associated with it!
The reality is, if the FHA loan program and the USDA loan product are not right for you, we also offer many conventional programs that can facilitate your loan requirements.
Depending on the kind of loan you select and the actual home that you want to purchase, closing costs usually run 4 to 6% of the purchase price. The FHA loan program allows up to 6% seller-paid closing costs and only requires a 3.5% down payment. Your down payment can even be paid via a down payment program or qualified gift. With our conventional program, we are limited by the underwriter as to what will be approved. The higher your credit score and the more secure your overall financial picture, the higher the probability that the underwriter will allow up to 6% seller-paid closing costs; however, they usually cap seller-paid amounts at 3% on conventional loans.
Can a Texas FHA Loan Help Texas First Time Home Buyers?
Definitely, the Texas FHA loan is a big help for first time home buyers. Texas FHA loans are insured and backed by the United States government, offering your lender the security they need to make a loan -- this equals opportunity for home buyers!
The following are just some of the advantages and benefits a Texas FHA mortgage loan for first time home buyers:
- The FHA mortgage offers easier credit qualifications; it does not require any minimum credit score (however in almost all instances, it will require you to pay off charge-offs and past collections).
- The FHA loans offer low 3.5% financing. The no down payment opportunity is possible when using down payment assistance.
- With an FHA mortgage, you only take care of a single payment every month. The taxes and the insurance are always included in the total PITI payment.
- FHA has a much lower rate of interest than many may suggest.
What Are the Requirements to Pre-Qualify for a Texas FHA Loan?
A mortgage representative can gather all of the necessary answers to questions and identify whether you are qualified for a low rate FHA home loan. Not ready to talk with someone just yet? Complete our quick quote and a loan officer will contact you at the time you specify.