Waiting to buy a home because you think your credit score is too low, or because you cannot afford a 20% down payment?
You may be able to buy a home now with an FHA mortgage. This type of government-insured loan features the flexible qualifications and competitive rates you need to move into your dream home right away.
What is an FHA Mortgage?
An FHA mortgage is a home loan that is insured by the Federal Housing Administration (FHA).
Insuring FHA loans offsets risk. That way, lenders can keep rates affordable even for borrowers without perfect credit.
Benefits of Applying for an FHA Loan in Dallas
FHA loans have so many phenomenal benefits. These include:
- Down payments as low as 3.5%
- Fixed or adjustable mortgage rates
- Affordable interest rates
- Low closing costs, if not covered by the seller
- Loose requirements with respect to credit score
With an FHA loan in Texas, you can buy a home, build a home, or upgrade or repair a home. FHA loans also are available for refinancing existing mortgages or for debt consolidation.
How to Qualify for an FHA Mortgage in Texas
Qualifying for an FHA loan may be easier than qualifying for a conventional mortgage, especially if you are a first time homebuyer just starting out with your financial life.
- The minimum credit score to qualify for a 3.5% down payment with an FHA mortgage is 580. But if your credit score is at least 500, you can still buy a home with an FHA loan with a 10% down payment
- A debt-to-income (DTI) ratio of 43-45% or better is expected.
- You must provide documentation that proves that you have been steadily employed over the most recent two years.
- You must have a clear Credit Alert Interactive Verification Reporting System (CAIVRS) report.
- You must be purchasing a primary residence with the FHA loan. You cannot use an FHA mortgage to buy a second home or vacation home.
There is a two year waiting period to buy a home with an FHA mortgage after a bankruptcy, but it does not disqualify you.
The same is true after a foreclosure, except that the waiting period is three years.
Apply for a TX FHA Loan Now
For first time homebuyers and other borrowers without perfect credit or the ability to make a large down payment, FHA mortgages open the path to fast and affordable homeownership.
Have questions, or ready to apply? Please call us today at (469) 886-8300 to schedule your consultation. Let’s get you into your dream home in Dallas or elsewhere in TX with easy qualification and competitive rates.