Federally-backed financing for first-time homebuyers is still a great option – FHA Loans are here to stay. Many first time buyers in the Houston area are taking out FHA Loans to purchase their first home in surrounding areas such as The Woodlands, Humble, Atascocita, Kingwood, Baytown, Cypress, Katy, SugarLand, Pearland, League City, Friendswood, and all of the great state(s) of Texas and Louisiana.
What is a FHA Loan?
FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down payment vs 20% that is required on other loan programs.
FHA home loans remain an integral part of the government’s efforts to help more Americans become homeowners. For borrowers with credit issues, or not much money for a down payment, FHA loans provide an alternative path on the road to homeownership.
Home prices and mortgage rates remain low, making this a great time to purchase your new home with government-backed, FHA financing. And, FHA loans are available in a variety of terms, to suit your individual needs.
Best of all, you can obtain individual financing with an FHA home loan. After making payments on time – and building your credit, and equity in your home – you’ll have the option to refinance into a conventional loan, with even better rates and no mortgage insurance premium.
So if you’re considering buying a home, consider getting an FHA loan and working with an expert, FHA-approved lender.
Who is Eligible for a FHA Loan?
Lower credit scores are often allowed on FHA Loans. In community property states, such as Texas and Louisiana, spouse’s debts are considered when qualifying even if not on loan application. Higher debt to income ratios are allowed though can be limited pending on risk factors of loan. FHA loans are allowed on primary residence transaction only for both purchases and refinances. Gifts are allowed for down payment and/or settlement costs. FHA allows up to 6% of contributions by seller to go towards buyer’s closing cost and pre-paids items. An Annual Mortgage Insurance Premium is required on all loans and is included in monthly mortgage payments.
Benefits of a FHA Loan
Since the 1930s, FHA Loans have made home ownership a reality for millions. Today, it can make the difference for you! FHA Loans may be your best option for achieving the dream of homeownership.
- FHA can provide a better alternative to Conventional Loans.
- Low down payment
- Flexible credit review
- Fixed or adjustable rate
- Limited closing costs; sellers can help pay closing costs
- No prepayment penalty
- Streamlined documentation on refinances
FHA Loan Limits
Different counties and parishes have different limits on how much you can borrow for an FHA Loan.
Get Pre-Approved for a FHA Loan
LaVerne St.Mary is located in Houston, Texas and services local communities including but not limited to The Woodlands, Humble, Atascocita, Kingwood, Baytown, Cypress, Katy, SugarLand, Pearland, League City, Friendswood, and all of Texas and Louisiana.
Call LaVerne St.Mary with HomeTown Lenders today! 832-253-3966.**
** Products, Programs and Guidelines subject to change with notice.