PROGRAM SUMMARY

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S. FHA mortgage insurance provides lenders with protection against loss as the result of homeowners defaulting on their mortgage loans.

FHA offers both fixed- and adjustable-rate mortgages that accommodate a low down payment from the borrower. Lets review the FHA Loan Requirements for a FHA Loan in Texas.

PRODUCTS OFFERED FIXED-RATE MORTGAGES

Traditional and jumbo loan amounts are separated into distinct products

  • 10-year
  • 15-year
  • 20-year
  • 25-year
  • 30-year

ADJUSTABLE-RATE MORTGAGES

Traditional and jumbo loan amounts are combined into the same product

  • 3/1 CMT
  • 5/1 CMT

ELIGIBLE BORROWERS

  • U.S. citizens and permanent resident aliens.
  • Non-permanent resident aliens may qualify (refer to HUD Handbook 4000.1)
  • Non-occupant co-borrowers:
  • Purchase transactions are limited to 96.5 for primary and 75% LTV when secured by 2 to 4-unit properties.
  • Not eligible on cash-out refinance transactions in Texas.

family

ELIGIBLE PROPERTY TYPES 203(B) LOANS

  • 1 to 4-unit property
  • PUD
  • Manufactured homes (double-wide only)

MINIMUM CREDIT SCORE

  • 600 min middle credit score for all borrowers

RATE/TERM REFINANCES & SIMPLE REFINANCES

  • Loan must be current
  • New loan may include any accrued late charges/escrow shortages
  • Any cash back to borrower at closing may not exceed $500
  • Prepaid expenses may include per diem interest to end of month on new loan, hazard insurance premium deposits, monthly MIP premium deposits and any real estate tax deposits needed for new escrow account, regardless whether mortgagee refinancing the existing loan is also the servicing lender for that mortgage
  • Simple refinances do not permit the paying out of equity to an ex-spouse or the payoff of subordinate liens; if either of those situations is required, the loan must be treated as a regular rate/term refinance

Texas FHA Mortgage Loans is the easiest mortgage and most lenient loan to qualify for. They offer a low down payment and are available to homebuyers with less than perfect credit.

For more information about FHA loans, their benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page.