{"id":4787,"date":"2021-10-08T18:08:39","date_gmt":"2021-10-08T18:08:39","guid":{"rendered":"https:\/\/www.trinityoaksmortgage.com\/?p=4787"},"modified":"2021-11-30T19:40:22","modified_gmt":"2021-11-30T19:40:22","slug":"introduction-fha-loan-texas","status":"publish","type":"post","link":"https:\/\/www.trinityoaksmortgage.com\/introduction-fha-loan-texas\/","title":{"rendered":"Introduction to FHA Loans"},"content":{"rendered":"\n
The FHA loan is a great option for homebuyers with less than perfect credit and\/or limited funds available to them. The program was developed in order to provide an alternate means of accessing the high standards set by conventional loans, while still allowing room from qualification requirements that can be challenging on those who have been approved before but want something different now because their circumstances may have changed since then.<\/p>\n
You’ll need to satisfy a number of requirements to qualify for an FHA loan. It’s important to note that these are the FHA’s minimum requirements and there may be additional stipulations.<\/p>\n
<\/strong><\/p>\n The minimum credit score for an FHA loan with Trinity Oaks Mortgage is 600. Though the FHA has not changed its requirements, the combined effects of the COVID-19 pandemic and recession have led many FHA lenders to raise their minimum required credit scores for FHA loans.<\/p>\n <\/p>\n If you’ve got a credit score of 620 or higher, your FHA down payment can be as low as 3.5%.<\/p>\n The good news? It doesn’t all have to come from savings. You can use gift money for your FHA down payment, so long as the donor provides a letter with their contact information, their relationship to you, the amount of the gift, and a statement that no repayment is expected.<\/p>\n <\/strong><\/p>\n The FHA requires a DTI of less than 50, meaning that your total monthly debt payments can’t be more than 50% of your pretax income. This includes debts that you aren’t actively paying.<\/p>\n For student loans in deferment, your FHA loan underwriter will include 1% of the loan’s total as the monthly payment amount. For other types of loans that you aren’t currently repaying, underwriters will use 5% of the loan’s total to calculate your DTI.<\/p>\n <\/p>\n The property you’re trying to buy with an FHA loan, whether it’s a house, a condo, a manufactured home, or a multifamily home, has to meet FHA minimum property requirements.<\/p>\n The FHA requires an appraisal that’s separate (and different from) a home inspection. They want to be sure the home is a good investment \u2014 in other words, worth what you’re paying for it \u2014 and ensure that it meets basic safety and livability standards. If the appraisal comes in lower than what they need to borrow, they would be responsible for coming up with the difference OR they may be able to use that to negotiate a lower price from the seller. <\/p>\n Today, most contracts are being written with the buyers waiving the right to negotiate the price if the value comes in low. In that case, the buyer would be responsible for paying for it. When the markets shift back towards a buyers\u2019 market then there may be options of re-negotiation.<\/p>\n <\/p>\n FHA mortgage insurance is built into every loan. When you get an FHA mortgage, you’ll make an upfront mortgage insurance payment (which can be rolled into the total amount of the loan) and make monthly payments thereafter. If you put less than 10% down the MI will remain for the life of the loan. But, with 10% down or more then the MI will remain on for only 11 years.<\/p>\n <\/strong><\/p>\n Find out more and see if you are eligible for an FHA loan from your Trinity Oaks Mortgage Loan Advisor.<\/strong><\/p>\n <\/p>\n <\/p><\/p>\n\n\n\n Trinity Oaks Mortgage, one of the area’s leading mortgage lenders has vast experience in dealing with USDA Rural Development loans in Texas. We’re available to answer any questions, help determine if you are eligible, and guide you through the home loan process. <\/p>\n If you or someone you know is interested in securing FHA financing, let’s talk! Submit the below form and we will connect you with one of our expert Loan Advisors near you. <\/p>\n\n\n\n\n\nCredit score<\/strong><\/h5>\n
Down payment funds<\/strong><\/h5>\n
Debt-to-income ratio<\/strong><\/h5>\n
Property approval<\/strong><\/h5>\n
Mortgage insurance<\/strong><\/h5>\n
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As low as 3.5% down payment<\/blockquote>\n<\/li>\n
Upfront mortgage insurance may be financed or paid in cash<\/blockquote>\n<\/li>\n
Ability to choose from fixed- or adjustable-rate terms<\/blockquote>\n<\/li>\n
Closing cost paid by the seller is 100% negotiable, but a seller is not required to pay any cost towards the buyers closing cost.<\/blockquote>\n<\/li>\n
100% gift funds \u2013 the entire 3.5% down payment can be a gift from parents, relatives or an employer<\/blockquote>\n<\/li>\n
Flexible credit qualifying \u2013 because it is government-backed, lower credit score thresholds are in place<\/blockquote>\n<\/li>\n
May also be an option for borrowers with limited equity looking to refinance.<\/blockquote>\n<\/li>\n<\/ul>\n
Are you interested in applying for an FHA Home Loan?<\/h3><\/p>\n\n\n\n
APPLY NOW<\/span><\/a><\/h3><\/p>\n\n\n\n