Texas FHA Home Loans
Texas FHA Home Loans are a great option and now is a great time to purchase a home in Texas. The Federal Housing Administration supports and helps people become homeowners. FHA stands for Federal Housing Administration and it is a part of the Housing and Urban Development or ( HUD ) . The FHA was developed to support the housing industry during the great depression and since that time has helped millions of family’s purchase homes with FHA Loans.
How FHA Home Loans Work
FHA Loans and There Advantages
FHA loans are backed by the government and they do offer some attractive advantages. Below are some of the benefits of an FHA Loan.
- FHA Loans only require a 3.5% down payment of the purchase price of the property.
- Lower interest rates than your standard conventional loan.
- A more lenient approval process for those with not so perfect credit.
- More flexible repayment terms available and lower closing costs.
- Ability to apply 2 years after a bankruptcy and 3 years after a foreclosure.
Another great advantage of the FHA Loan is whats called the FHA streamline refinance. If you already have an FHA loan and you would like to refinance to a lower monthly payment the FHA makes this process easier for home owners.
FHA Loan stipulations
Since the Federal Housing Administration insures the mortgage they require that mortgage insurance is payed during the loan. So if the borrower would happen to default on the loan the the FHA takes these insurance premiums and reimburses the lender. Mortgage insurance makes the FHA loan possible. Below are a few stipulations of an FHA Loan.
- Required mortgage insurance
- Limited loan options
- Borrower loan limits
- Qualified Property standards
FHA Loans have guidelines that are more relaxed than conventional loan guidelines. If you are concerned about getting approved for a home loan explore your options and try an FHA Loan. Consult with a mortgage professional to see if an FHA loan is the right choice for you.