1st Time Buyers - Only 3.5% Down

FHA Loans

FHA loans are the perfect loan option for first time home buyers, 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. Currently (2022) you can use Texas FHA loans to buy new homes up to $420,680.  The loan size limits are higher in Dallas, Austin, Houston and Texas metro areas. Call or apply online to visit with your FHA loan specialist about loan limits in your area.  

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). 

FHA loan programs are primarily designed to help borrower’s that do not meet requirements for conventional home loans. There can be instances when a conventional borrower would still choose a FHA loan. Interest rates are governed by the same market forces and principles as conventional mortgages.  The main difference between conventional and FHA is in the terms of how the mortgage is written and how it is underwritten.

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. 

Buying your first home? FHA loans are a great mortgage option for 1st time home buyers due to the lower down payments and easier credit guidelines. 

FHA 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)
Lone Star Financing | TX FHA home loan specialist
FHA Home Loans in Texas

More about FHA Loans

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. 

Why Choose Lone Star Financing?  Our team of mortgage professionals specializes in Texas FHA mortgages – we close dozens of FHA loans every month and are an approved FHA lender in Texas.   As a direct FHA Lender we have the flexibility to underwrite your loan using common sense underwriting. Unlike many mortgage companies that focus primary on rate and high pressure sales, we educate you on the best home loan program for your individual needs.  As a direct FHA lender we offer low rates, low fees, and in-house underwriting – our goal is to close all loans in 21 days or less.  Thank you for choosing Lone Star Financing as your FHA mortgage lender in Texas. Call today or jump in the the front of the line and apply online. 

FHA Loans - Things to Know

2022 Texas FHA Loan Limits

Loan limits may vary, and rural and urban areas may vary, but current loan limits range from $331,760 to $765,600.

FHA Loan amounts in Texas are based on the home prices. The value of the home you wish to buy must be less than 115% of the median home price in the county where the property is located.

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.

Borrower Qualifications

FHQ 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.

Lone Star Financing - FHA Home Loans
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Rebeka L
Rebeka L
Heartland, TX
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Brenda was quick to respond to questions I had and made herself available to me. She was very patient and understanding when having to resolve issues regarding my ex. The entire team, in fact, was great and a true godsend!
Michael Underwood
Michael Underwood
Austin, TX
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As a realtor here in Austin, TX, I’ve been working with Lone Star Financing for almost a decade. The loan officers at Lone Star financing are without a doubt the best communicators in the business. They provide timely updates to me and my buyers from the start of the loan to close of sale and I can't tell you how important that is during a real estate transaction. I recommend all of my clients use Lone Star financing because unlike a lot of mortgage companies they can close loans on time. During one of the most critical times of my customers lives, it's imperative that all links of the chain are strong. Having the right lender in place is key. Thanks Lone Star!
Jordan Rodriquez
Jordan Rodriquez
Bastrop, TX
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I was thoroughly impressed with the customer service from start to finish. I had a lot of questions and they were all answered. I recommend lone star to first time home buyers as well as those who have note done it before.
Veronica M.
Veronica M.
Camey, TX
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Making me feel comfortable through the entire process as I was a bit nervous but Keith’s ways with his words and staying professional never made me feel overwhelmed, as well as the staff members that also helped me. The whole process was a smooth ride with no bumps and that was a great feeling making this single mother very happy with the outcome!!! Thanks!!!
Scott Kruse
Scott Kruse
San Marcos, TX
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I have gone through the home financing five times, and this is my second re-finance. The team at Lone Star Financing was the best experience I've ever had going through the mortgage process. The previous finance company I used to purchase my home was the worst experience I'd ever had in getting a mortgage. I was extremely hesitant to go through the re-finance process, but with the interest rates being so low I knew I would be saving a lot of money. I did the research to find a highly reviewed local financing company, and Lone Star Financing was the best. They did an outstanding job helping me through the process, made it incredibly easy and quick. More...
David, Y
David, Y
San Antonio, TX
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Thanks for helping us through the loan refinance process. P.S. The only reason we can't refer family and friends is we don't live in Texas or have any contacts there!