- Best FHA Lender in Texas - Low Rates & Fast Closings
Texas FHA Home Loans
FHA loans are the perfect loan option for first time home buyers due to lower down payments and easier credit guidelines, but remember you do not have to be a 1st time home buyer to be eligible for a FHA home loan. FHA loans are attractive to younger buyers that may not have a lot of funds in savings, that’s because FHA loans only require 3.5% down.
Lower credit scores OK – with 3.5% down we currently go down to a 600 FICO. FHA loans can be used for condominiums but the the condo has to be on the FHA approved list. Current (2024) you can use Texas FHA loans to buy new homes up to $498,257. The loan limits are higher in some metro areas, for example the loan size limits are higher in Dallas, Austin, Houston and Texas metro areas.
FHA home loans are a government loan insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD).
Thee FHA program is designed primarily to assist borrowers who do not meet the requirements for conventional loans. The FHA loan may still be an option for conventional borrowers in certain circumstances. In the same way as conventional mortgages, interest rates are governed by market forces. Much like Texas USDA loans and VA loans in Texas, the underwriting and writing a mortgage are the major differences between conventional loans and FHA mortgages.
Texas FHA home loan programs are particularly beneficial to young borrowers with less available cash and savings. FHA rates are market rates, while down payment requirements are lower than most conventional loans.
FHA Loan Highlights
- Simple Qualifying
- Only 3.5% Down Payment Required
- 100% Allowed with Approved Gift Fund Source
- Seller Paid Closing Costs to 6%
- More Flexible Underwriting
- Higher Debt to Income Ratios
- Lower Minimum Credit Scores
- No Prepayment Penalties
- Streamline Refinance Available
- Manufactured Housing OK (Subject to Restrictions)
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30 Year FHA
Stable monthly payment with less money down
Minimum FICO Credit Score
620
Minimum Down Payment
3.5%
Maximum Loan To Value
96.5%*
Maximum Debt To Income
50%*
Except Ons To 55%
Mortgage Insurance
Yes
Years Since Bankcruptcy
2
Years Since Foreclosure
3
Years Since Short Sale
3
Special Qualification Requirements
NONE
Texas FHA Loans - Things to Know
More about FHA Loans in Texas
FHA is an abbreviation for The Federal Housing Administration and it was created by Congress in 1934. The purpose of the government backed loan was to make it easier for young buyers to get mortgages. By insuring mortgages for single family and multifamily homes, FHA mortgage insurance provides lenders with protection against a loss when a borrower defaults on their loan. Loans must meet requirements established by the FHA to qualify. FHA loans are the perfect loan for first time home buyers, but remember you don’t have to be a 1st time home buyer to qualify for a FHA loan.
Best FHA Lender in Texas FHA mortgages are one of our specialties – we close dozens of FHA loans every month and are an approved FHA lender in Texas. Due to our direct FHA lender status, we are able to underwrite your loan using common sense underwriting principles. Our mortgage company educates you on the best home loan program based on your individual needs, unlike many mortgage companies that focus mainly on rate and high pressure sales. What makes Lone Star Financing one of the best FHA lenders in Texas? As an approved FHA lender we offer low rates, low fees, and in-house underwriting which means we can close loans fast – typically in 28 days or less. Check our FHA mortgage rates in Texas.
Texas FHA Loan Requirements
2024 Texas FHA Loan Limits
For single-family homes, the 2024 FHA loan limit in Texas is $498,257 but it varies by county.
The amount of an FHA loan in Texas depends on the price of the home. In the county where the property is located, the median home price must be less than 115% of the home value you wish to purchase.
To qualify you will need to have an FHA appraisal to ensure the property is valued at or above the value you intend to borrow.
Read More on FHA Loans in Texas
Borrower Qualifications
FHA requirements will require you to meet the following:
* Stable employment/income
* The home will be your primary residence
* No foreclosures (last 3 years)
* 50% or lower DTI ratio
* Minimum 3.5% down payment
* Money to cover the upfront mortgage insurance premium (UPMIP).
* Money to cover closing costs, which could be anywhere from 2 – 6% of the purchase price.
Texas FHA Loans
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