{"id":5386,"date":"2022-02-03T19:38:58","date_gmt":"2022-02-03T19:38:58","guid":{"rendered":"https:\/\/www.trinityoaksmortgage.com\/?p=5386"},"modified":"2022-02-04T16:45:25","modified_gmt":"2022-02-04T16:45:25","slug":"should-you-apply-for-fha-mortgage","status":"publish","type":"post","link":"https:\/\/www.trinityoaksmortgage.com\/should-you-apply-for-fha-mortgage\/","title":{"rendered":"How to Know If You Should Apply for a FHA Mortgage: A Guide"},"content":{"rendered":"
Are you looking to buy a home? Chances are you have reviewed some mortgage choices or plan to start soon.<\/p>\n
Many borrowers in the Dallas area look at an FHA loan. These loans help many buyers qualify for a mortgage.<\/p>\n
Want to discover if an FHA loan makes sense for you? Here are some factors to consider.<\/p>\n
An FHA loan gives you access to higher mortgage loan limits<\/span><\/a>. The FHA raised their 2022 loan limit to $647,000.<\/p>\n A higher mortgage loan limit reduces your minimum down payment. You can get a house with less cash.<\/p>\n We’ll illustrate this with an example.<\/p>\n Last year, the conventional loan limit was $548,250. If you wanted to buy a home for $650,000, you would have needed to put down $101,750. This down payment gets you to the mortgage loan limit.<\/p>\n Under the new rules, you only need to make the minimum 3% down payment. The 3% down payment puts the mortgage loan below $647,000.<\/p>\n A 3% down payment of $650,000 comes to $19,500. You pay 1\/5th of the down payment and still get the house.<\/p>\n Higher limits make an FHA loan more enticing. You are less likely to need a jumbo loan to complete your purchase.<\/p>\n Some home buyers feel limited by their credit score. Not everyone can qualify for a conventional loan.<\/p>\n You can increase your credit score<\/span> over time. However, raising your credit score takes time. You may miss out on the home of your dreams because your credit score is too low.<\/p>\n This problem comes up less often for an FHA loan. You can make a 3.5% down payment with a credit score of at least 580. If you make a 10% down payment, you can get in with a credit score of at least 500.<\/p>\n A conventional mortgage comes with a stringent credit score requirement. You must have a credit score of at least 620 to qualify for these loans.<\/p>\n You need an even higher credit score to make a lower down payment. Lenders will want to see a credit score above 740 for a lower conventional loan down payment.<\/p>\n Would you rather get a 10% down payment on a 500 credit score or wait until you bring it up to 740? The FHA loan provides quicker access to a house.<\/p>\n An FHA loan comes with mortgage insurance premiums. These premiums often last for 11 years or the lifetime of the loan.<\/p>\n You also pay mortgage insurance on a conventional loan. However, these payments go away once you build up 20% equity.<\/p>\n You can take out an FHA loan now and refinance it later<\/span><\/a>. A refinance will save you money once you reach 20% equity and build up your credit score.<\/p>\n An FHA mortgage gives you access to the immediate upside. You can later compensate for the insurance premiums through a refinance.<\/p>\n Most homebuyers need a mortgage to finance their investment. An FHA loan presents many advantages. You get to own a home sooner and with a lower down payment.<\/p>\n If you want an FHA loan in Texas, we can help. We also offer a free online calculator so you can compare loans. Apply for an FHA loan<\/span><\/a> today.<\/p>\n","protected":false},"excerpt":{"rendered":" Are you looking to buy a home? Chances are you have reviewed some mortgage choices or plan to start soon. Many borrowers in the Dallas area look at an FHA…<\/p>\n","protected":false},"author":5,"featured_media":5387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[16],"tags":[],"aioseo_notices":[],"yoast_head":"\nLower Credit Score Requirements<\/h2>\n
You Can Refinance Later<\/h2>\n
Want an FHA Loan for Your Texas Home?<\/h2>\n