- FHA lender in Texas for new home loans & refinancing - Low Rates & Fast Closings.
Texas FHA Home 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)
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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