FHA Loans

The primary goal of the Federal Housing Administration (FHA) is to improve the housing market and protect lenders and borrowers in the event a borrower was to default on their mortgage. FHA has grown to become the largest insurer of mortgages in the world. The highest available loan amount will depend on the Texas county but could be as high as 330,600 depending. At Vince Gutierrez Mortgage we are proud to offer great rates and flexible financing options on Texas FHA Loans.

An FHA Loan can be used for a number of different purposes including: Refinancing and existing mortgage, purchasing a new home, reverse mortgages, renovation projects. Cash-out refinance options are available to buyers in need of capital for home repairs or debt consolidation, while streamline refinance loans are available to reduce interest on current loans.

FHA loans offer relaxed credit requirements and low down payment options making them easier to qualify for. Buyers can qualify for a FHA loan with a down payment of 3.5% and a credit score of 580. In some circumstances buyers can qualify with a lower down payment and a lower credit score. Even if a buyer does not have adequate savings to cover the down payment, family members are able to give the money. With the ease of qualification, FHA loans are very popular among first time home buyers in Texas.

FHA Loan Requirements

  • Credit Score: Typically the minimum credit score is 580. However, borrowers with a lower score may qualify.
  • Income Requirements: The debt to income ratio of 43% is generally required although a debt to income ratio can be approved in certain circumstances.
  • Property Requirements: All properties purchased through the FHA Loan Program must meet certain safety, security and soundness requirements set forth by FHA.
  • Down Payment: a down payment of 3.5% is generally required although a lower down payment can be used if the buyer qualifies.

There are two different mortgage insurance premiums (MIPs) that are required with all Texas FHA Loans. The first is an “upfront premium” of 1.75% of the purchase price. Buyers will have the option to pay this at closing OR roll this premium into their mortgage. The second is a monthly insurance premium (MIP). This monthly premium will fall between .80 and 1.05% and will based on a number of factors including but not limited to loan amount, length of mortgage and loan to value ratio.

At Vince Gutierrez Mortgage we are committed to help our clients with all of their FHA loan needs. Whether you are searching your first home, or looking to refinance, we can help you with that. Contact us today at (281) 597-9234 with any questions you may have with your FHA Loan or to get pre-qualified.