FHA Mortgage Texas
FHA Mortgages in Texas – What is a FHA Home Loan?
An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). … However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 550 or higher with OneTrust Home Loans.
Benefits of a FHA Mortgage…
- Low down payment of 3.5% and you do not have to be a first time home buyer or meet income limits as FannieMae requires for their 3% down program
- The minimum credit score with OneTrust Home Loans is 550 subject to approval wherein the minimum score for a conventional loan is 620
- FHA will allow for a person to currently be in a Chapter 13 BK as long as they can prove on time payments to the courts for 12 months in accordance with their original BK plan and a letter from courts granting permission to enter to a mortgage transaction
- Allows the seller to pay up to 6% of the sales price towards the buyer closings and pre-pays not to exceed the actual total of the closing costs and pre-pays wherein conventional will only allow 3% from the seller with 3 to 5% down payment
- There are no income limits but the maximum mortgage for Harris County and the surrounding area is: $331,200 for a single family dwelling and higher for 2 to 4 unit residences
- The debt to income ratio is much higher for FHA affording people the opportunity to buy more house. Subject to AUS approval, I’ve seen DTI up 57% approved and recently closed a transaction with a 57% DTI ratio wherein conventional is limited to 50%.
So, those are some the benefits of FHA and the #1 reason folks might avoid FHA is the extra mortgage insurance costs relative to a conventional loan. FHA’s has an upfront mortgage insurance premium of 1.75 and monthly, depending on down payment and length of the loan of as much as .85% and the monthly amount is permanent for the life of the loan.
Most owner don’t live in their home past 9 years, so I’m not sure the permanency of the monthly mortgage insurance is that big a deal.
In summary, FHA is great loan program that offers more opportunity to more folks who want to own a home.
If you or someone you know would be interested in knowing more about a FHA home loan, call me or email me at firstname.lastname@example.org or go to www.mortgagemack.com to apply and please subscribe to my vBlog at www.teammortgagemack.com
I look forward to your questions and comments.
Thanks for watching and have a great day! MortgageMack out