FHA Loans
What You Need to Know About the FHA Loans in Texas
The FHA loan is a type of loan provided to those who are interested in buying a home. The loan comes from the Federal Housing Administration. It is ideal for those with lower incomes who are tired of renting and would simply like to become homeowners. The loan makes it possible for people to buy properties in ideal areas that provide just the right amount of space for them and their family members. If you are buying a home in the state of Texas, you should learn more about applying for the FHA loans in Texas.
Meeting the Requirements
In Texas, you must meet certain requirements to be considered an eligible applicant. If you do not meet the following requirements, you will need to wait until you do meet them before filling out an application in hopes of receiving the loan. These are the most important requirements to meet:
- Must have a credit score of at least 500
- Must have 10 percent of the cost of a down payment for the home
- Must have a credit score of 580 for a lower down payment of approximately 3.5%
- Must not have had any bankruptcies in the past two years
- Must have a reliable source of income with proof of that income
If you feel this loan is the best loan to obtain when buying a home, you should work on improving your credit score. If your credit score is already quite high, you have a great chance of getting approved for the loan that you need to buy the home of your dreams. However, if your score is incredibly low, work on paying off any old debt that you might owe to various lenders to get your score to increase over the next few months.
Understanding How Much Money You Can Receive
While the FHA loans in Texas come in handy for homebuyers, you need to know that there is a limit to how much money these lenders will provide to you. For example, if you are buying a single-family home, the maximum amount you can receive in the form of a loan from the Federal Housing Administration is $331,760. The maximum amount provides is often ideal for most buyers because the cost of the average single-family home is less than $331,000. However, it does depend on the homes you are looking at and are most interested in purchasing in general.
Limits on the FHA loans in Texas are often increased in some of the high-cost areas throughout the state. You would need to decide on the county that you would like to move into and then carefully review the maximum amount of money you could receive in the form of a mortgage loan from the lender.
The Additional Advantages Associated with FHA Loans in Texas
Along with getting a loan for a home and paying much less on the initial down payment, there are additional benefits associated with the FHA loans that you can apply for while living in the state of Texas. These are some of the benefits you need to know about:
- Sellers will pay the cost of closing instead of the buyers
- You do not need to have stellar credit to get approved
- You may end up paying as low as 3.5% on the home that you want to get as a down payment
- Various refinancing options are available at later times
- You can choose from various housing options, including manufactured properties
It is because of these benefits that many Texas residents prefer applying for this type of loan over other types of loans that are available for homebuyers. The application process is simple and quick, too.
Buy the Home of Your Dreams While Using the FHA Loans
If you are in Texas, hoping to buy a home, and would like to pay as little as possible during this process, you should apply for the FHA loan. Not only can it help you save money on the initial down payment that you are expected to pay when buying a home, but it can help you afford the cost of the home of your dreams and allow you to get what you want without having perfect credit. If you have worked on fixing your credit for some time and it is still under 700, you can get approved for the FHA loan and receive great terms.
If you get approved for the loan, make sure to carefully go over the terms and conditions with the lender. You will find out how much you would need to pay each month for your mortgage while you work on paying off the loan that you borrowed. If you agree with the terms, you can receive the loan, close the deal, buy the home, and move into a property that you love.