TEXAS FHA LOANS
1st Time Buyers - Only 3.5% Down
Texas FHA Home Loans
FHA home loans are insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loan. It’s this protection that makes it possible for mortgage lenders to provide insured Texas FHA home loans.
FHA loan programs are primarily designed to help 1st time home buyers and low to moderate-income families who do not meet requirements for conventional loans. However, there are cases in which borrowers who are eligible for conventional financing would still choose a FHA home loan over a conventional mortgages as FHA loans in Texas do not adhere to strict underwriting guidelines.
FHA home loan programs are particularly beneficial to those buyers with less available cash. The rates on Texas FHA loans are generally market rates, while down payment requirements are lower than most conventional loans.
Buying your first home? Texas FHA loans are a great option for first time home buyers due to the low down payment and easier credit standards. Your down payment can be as low as 3.5% of the purchase price, and closing costs and fees can be covered by the seller. .
- 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)
Your Texas FHA home loan specialist!
More about Texas FHA Loans
FHA is an abbreviation for The Federal Housing Administration. Congress created the FHA in 1934 to make it easier for home buyers to get mortgages. By insuring mortgages for single family and multifamily homes, FHA mortgage insurance provides lenders with protection against a loss if a FHA homeowner defaults on a loan. Loans must meet requirements established by the FHA to qualify.
Why Choose Lone Star Financing? As a local Texas mortgage company, we have the flexibility to underwrite your Texas FHA loan using common sense underwriting. Unlike many FHA mortgage companies that focus primary on rate and high pressure sales, we educate you on the best home loan program for your individual needs. Thank you for choosing Lone Star Financing as your FHA mortgage lender in Texas—we look forward to earning your business!
Texas FHA Loans - Things to Know
FHA Loan Limits
Texas loan limits for FHA loans 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 your home will have to receive and FHA appraisal to ensure the property value is worth the amount of funds you are borrowing.
Read More on FHA Loans.
To qualify for an FHA loan, you’ll need to meet the following requirements.
* 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.