Group of People Who Normally Qualifies for an FHA Loan in Texas
Do you know why home buying in Texas is a great idea? It is because you get to choose from several loan options that suit your status and financial capabilities. One of the most popular among homebuyers is the Federal Housing Administration Loan or commonly called as an FHA Loan.
Texas FHA loan is part of the United States Department of Housing and Urban Development (HUD). It offers a loan program, which requirements are easy to meet. The government insures the loan; so it only requires a down payment of 3.5% and a credit score of 580 and above.
The texas fha mortgage program also requires borrowers to pay private mortgage insurance (PMI), which is typically around 0.5 to 1 percent of your total loan amount per year.
So who gets to qualify for this type of loan program? When you meet the requirements as mentioned above, it will be easy for you to acquire an FHA loan. If you think belong on this category of people, then you are most likely to qualify for a texas fha loan:
Since it offers a low down payment and average credit score, FHA loan is highly recommended for first-time homebuyers. It is a good starting point for someone who is about to invest in a property as it also does not require any minimum or maximum income requirement. However, lenders will also look if the borrower has a steady employment history for the past two years.
If you are at least 62 years old, owns a home, or at least have a remaining low balance from your first mortgage, you can still qualify for FHA loan. The FHA loan also offers a special Home Equity Conversion Mortgage (HECM) program for senior citizens looking for a second home or planning to downsize their home.
Homeowners who are keen on doing home repairs by themselves usually qualify for an FHA loan. All you need is to sum up your remodeling cost into a mortgage. Refinancing the repair cost into a new FHA loan is also possible through the 203k loan program. However, this type of loan requires a licensed contractor as you are not allowed to do the work all by yourself.
Or the ones who are purchasing a factory-built house. FHA loan can cover the mobile home alone, the lot where it will be built, or both. However, it will also require the homeowners to pay both upfront premium and an annual dividend of the insurance benefit, which will be on top of their loan amount. Although this requirement will make your loan a little more expensive than usual, it will surely be worth it.
If you are the type of homeowner who cares so much about the environment (which we all should be), then you can also qualify for an FHA Energy-Efficient Mortgage. This type of home loan allows you to fund energy-efficient features in your house without raising your down payment.
Borrowers should also have an energy assessment of the proposed home improvement, whose main goal should be to save on energy and have cost-effective enhancements.