FHA Loans in Houston, Texas
The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.
Advantages
Bankruptcy not an automatic disqualification
Lower interest rates
Down payment is less
Lower mortgage points and other closing cost requirements
Resale can be made more quickly
Is backed by the U.S. government
Features
Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower
Loan Limits are lower than conventional
MIP required regardless of the Loan-to-Value (LTV)
What to Consider with a FHA Loan in Houston TX
A Supreme Lending Originator will evaluate a borrower’s qualifications for an FHA loan in Houston as usual, but in addition to looking over a credit report, we may look at work history for the past two years and other typical payment histories, such as utility and rent payments. Keep in mind that the lower your credit score and the less you put towards a down payment, the higher the interest rate and monthly payment will be on the mortgage. It’s also important to remember that when buying a home, borrowers may be responsible for certain out-of-pocket expenses such as loan origination fees, attorney fees, and appraisal costs. One of the advantages of applying for an FHA loan in Houston is If the seller or the builder is having a hard time finding a buyer, they may be able to help you at the closing table.
What do I Need to Know About the FHA Loan in Houston?
The Federal Housing Administration (FHA) was created in 1934 as an effort to bolster home sales during the Depression. By financially guaranteeing loans, the FHA loan in Houston, TX lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.
The FHA Loan in Houston is designed for low-to-moderate-income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.
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