FHA Mortgage in Houston TXBy admin | July 10, 2017 | Our Services
An FHA Mortgage in Houston TX is a type of mortgage loan that is insured against default by the Federal Housing Administration (otherwise known as FHA). Back in the 1930′s in The Great Depression, the FHA loan was created by the government to excite the housing market make buying a home affordable again. Since then, FHA loans have been the foundation of the American Dream by allowing lower down payments, better-fixed rates, and easier qualifying standards. FHA Mortgage Houston TX is actually one of the best types of mortgage loans available in today’s real estate market because they allow more people to have an opportunity to buy.
Getting Started with FHA
When it comes to FHA Mortgage Houston TX, Homewood Mortgage LLC is your Houston FHA Home Loan experts providing FHA loans in Houston and all over Texas. Homewood Mortgage LLC offer the best 30 and 15 Year FHA interest rates and most economical closing costs when it comes to your home loan Houston – hands down.
As your local FHA Mortgage Houston TX Lender, Homewood Mortgage LLC just want to make sure that your condition makes sense and your mortgage needs are met. Whether you’re trying to regulate if you qualify or if you’re involved in finding out what kind of papers you’ll need to ultimately get started on your loan, we can provide you the information you’re looking for.
How do we do this?
By Offering You the Best FHA Rates in Houston:
Because we have completely focused on FHA loans for years, we have developed some of the best investor relationships in order to give you the best rates and save you even more money.
By Giving You FREE, Expert FHA Advice:
Buying a home or refinancing a home can be a puzzling confusion at times. Rest assured that your FHA loan is in good hands and we’ll help guide you in the right direction when you need us most.
By Speeding Up Your Loan Process
With in-house underwriters, streamlined processing, and proprietary e-sign technology, you’ll have the peace of mind knowing that systems are in place to get you closed and funded in time.
- The borrower must meet FHA credit qualifications
Although FHA allows a borrower with a middle credit score of 580 to purchase a home, it is actually the lender who dictates the minimum credit criteria they require to extend a loan. Most big lenders require a minimum of 640 middle credit score. Some private lenders will grant a loan to borrowers with credit scores as low as 620. Rarely would a lender, like AMCAP Mortgage, approve a borrower with a score below 620.
- The borrower must have 3.5% down payment
The minimum down payment requirement for FHA 203b loan is 3.5% and the maximum loan-to-value (LTV) is 96.5%. The total down payment of 3.5% of the purchase price can also be a “gift” given to the borrower by an immediate family member. Gift differs from a loan in the certain aspect that a gift does not have to be paid back by the home buyer, whereas a loan has to be paid back in the future.
- The borrower must be able to document their income
Self-employed borrowers, 1099 home buyers, and other commissioned employees will need the average of their last two (2) years tax returns to calculate their monthly income. Home buyers who are salaried and get an actual W2 are simple and easy. Since their income can be calculated based on one of the following: (a) hourly rate, (b) monthly wage, or (c) box #1 on W2. Any bonus, in order to be counted, must have been received in the last two (2) years and will continue for the next 3.
- The borrower must have sufficient assets and reserves
Prospective home buyers must have enough reserve in their bank account after down payment is taken out. Depending on the borrower’s scenario and credit situation, typical rule on reserves is about 3 – 6 months of the proposed housing monthly payment.