Texas FHA Mortgage Loans

Texas FHA Mortgage Loans

All over Texas, the FHA mortgage loan program is more popular than ever. Just a few years ago, not that many people in Texas were familiar with FHA loans, but today they are often the most popular choice as a way to finance homes for people living in Texas. FHA loans are no longer just for first time home buyers or for people with less than perfect credit – they have become more “mainstream”.

Many people aren’t aware that FHA doesn’t actually lend you money — they only insure your loan in the event of default. Because FHA acts basically as an insurance company, they collect premiums from borrowers as a way to pay for loans when people default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

Texas FHA Mortgage Loan Highlights Include:

• No prepayment penalties
• 3.5% down payment for new home purchases
• Required to pay monthly mortgage insurance (in addition to UFMIP)
• UFMIP is required to be paid, but can be financed into the loan
• Sellers are allowed to pay closing costs
• The most popular Texas FHA programs are the FHA streamline, FHA 203k and FHA 85% cash out

Texas FHA Streamline Refinance

For people who currently live in Texas and have an FHA loan, the FHA Streamline refinance loan is a very popular option when rates drop.  With the FHA streamline program, you can get a lower interest rate and get a lower monthly mortgage payment – without having to completely re-qualify for a new loan. FHA designed the streamline program to allow eligible FHA borrowers to save money on their monthly mortgage with minimal qualification criteria. Learn more about the California FHA streamline program.

Texas FHA 203k Streamline Program

With quite a few foreclosures on the market, many people are considering buying a home that is in need of a few repairs. If you are considering buying a bank owned property that is in need of repairs, the Texas FHA 203k streamline program is a great choice. The FHA 203k streamline program allows people to finance up to 35,000 for eligible repairs and improvements and the money can be disbursed directly to the contractors who perform the work.

Texas FHA 85% Cash Out Program

Although it is not as popular when home values are decreasing, many times people will want to take cash out of their home and use it for whatever reason. The FHA 85% cash out program makes that possible. For homeowners who are interested in turning the equity in their home into cash, FHA designed the Texas FHA 85% cash out program. With the  85% cash out program, homeowners can get up to 85% of the appraised value of their home in cash – many people use this as a way to consolidate high interest credit cards or pay off other debts.

Texas FHA Loan Experts: Contact Us

For more information about any of the above Texas FHA loan programs, you can contact us directly at the toll free number listed above. We would be happy to answer any questions that you may have! You can also submit your information online and we will be in touch with you as soon as possible.