An FHA loan is a mortgage which is insured by the Federal Housing Administration (FHA). That means that FHA is assuming some of the financial risk associated with a borrowers loan. In the Houston Metro and most surrounding counties, FHA limits each loan to $331,200.
Down payment as low as 3.5%.
For purchase, the home must be consider in “livable condition” by FHA standards.
Choose your loan term from 10, 15, 20, 25, or 30 years.
Seller may cover all or part of the closing cost.
Purchase, refinance, or cash out.
Primary homes only.
Unless you meet an exception, you are allowed only one FHA loan at the time.
Here are few reasons to think about applying for an FHA loan in Houston or Greater Houston:
FHA loans are designed to provide you with a low down payment. While the exact down payment amount varies based on your credit score, it may be as low as 3.5%.
Seller can pay from zero to 3% of a buyer’s closing costs; therefore a seller can potentially pay for all of buyer’s closing cost.
You do not need to have a perfect credit score to qualify for low interest rates and other great benefits through FHA-backed home financing.
An FHA loan may be structured according to your needs with a fixed or adjustable interest rate.
Use FHA loan as you see fit to buy, refinance, or cash out.
You do not need to have a FICO score to put down 3.5%, but if you do have a FICO score there are two options:
- If your credit score is between 500 and 579, you must put 10% as downpayment.
- If your credit score is 580 and above, you may be eligible for a 3.5% down payment.
Normally, the limit on your debt-to-income ratio is up to 43%, however, with compensating factors you could be approved up to beyond a 57% debt-to-income ratio.
You must provide documentation providing that you have been steadily employed over the past two consecutive years.
The property you are trying to finance must be your intended primary residence. An FHA loan cannot be used to purchase a second home, vacation home, or investment property.
You can not have any delinquent money owned to Federal Agency such as: Department of Education (student loans), HUD (past FHA loans), USDA and VA (mortgages), The Small Business Administration (SBA), and Department of Justice (DOJ). If you do, you will need to make payment arrangements and reapply to be accepted for an FHA home loan.
You do not need to be a first-time home buyer. However, you may be allowed only one FHA loan at the time UNLESS you are A) Relocating 100 or more miles from your current primary residence, or B) Have a significant increased in family size, or C) You are an allowed Non-Occupying Co-Borrowers who want to buy a home of your own, or D) You are moving out of jointly-owned Home, where the other co-borrower stays in the old property.
If you have been forclosed on, this does not disqualify you, but it must be 3 years or more behind you.
If you have declared bankruptcy, this likewise will not stand in your way, so long as it is two years or more in your past.
If you use our realty affiliate Texas Property Realty on a closing transaction of a home, then your final home loan interest rate in combination with all expenses, will be lower on the same loan product than any competitor by at least 1/8 percent APR, or we Texas Property Lending, Inc. will pay $1,000 towards your closing costs when you close Texas Property Realty.*This Guarantee applies only to Products and Programs that Texas Property Lending offers, and only includes Jumbo, and Conventional, and, any claim for reimbursement must be made in writing no later than 30 days prior to closing. In all cases Texas Property Lending must have the opportunity and right to beat the rate and expense of any competitor. This guarantee does not apply if your family member, extended family member, fiancé or significant other is doing your loan, as our competitor.
Try our affiliate:
Our loan services at Texas Property Lending, Inc. are available to anyone purchasing a home. However, you can streamline your home purchase by combing the services of Texas Property Lending, Inc. with our affiliate Texas Property Realty as your real estate broker. Combining these services will help us (Texas Property Lending, Inc.) get you in your dream home quickly and could also decrease your overall costs. If you’d like to learn more about this bundling of services from Texas Property Lending, Inc, and how this could save you money, call now at 713-955-LOAN (5262).
We endorse the spirit of giving espoused by Bill and Melinda Gates, Warren Buffet, and others, in helping to reduce global inequality and human suffering. Each time you close a transaction with either affiliated business, Texas Property Lending Inc or Texas Property Realty, we donate 10% of earned Commissions to Charity. With each of your particular transactions, ask us for details!
-Bill and Melinda Gates
Texas Property Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.