FHA Home Loans
Loans insured by the Federal Housing Administration (FHA) that have been helping people become homeowners since 1934.
- Low Down Payments
- Insured by FHA (Texas Mortgage Consultants, PLLC is not acting on behalf of or at the direction of the federal government.)
HOW IT WORKS
GUARANTEED LOANS FOR QUALIFIED APPLICANTS
FHA loans have been helping people become homeowners since 1934. The definition of an FHA loan is a mortgage that's insured by (FHA) the Federal Housing Administration. Borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers may qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher.
FHA LOAN ADVANTAGES
- Down Payments as low as 3.5%
- Fixed and Variable Rates
- Fixed and Variable Terms
- Insured by the Federal Housing Administration(Texas Mortgage Consultants is not acting on behalf of or at the direction of the federal government.)
MORE ABOUT FHA HOME LOANS
FHA does not make loans, they only guarantee loans underwritten to their guidelines. FHA charges mortgage insurance to all borrowers using an FHA loan.
FHA Loan Details
FHA charges mortgage insurance upfront (UPMIP) and on a monthly basis. Currently, the upfront charge is 1.75% and the annual charge is .55%. Here is an example of how this works. If the FHA base loan amount is 100,000, the upfront MI would be $1750 (100000*1.75%). The upfront is added to the loan amount. To calculate the monthly amount (Based on an annual MIP of .55%), we take the new loan amount $101,750*.55%=$559.63 annually or $559.63/12=$46.64 per month.
Loan Qualification Requirements
FHA requires a 3.5% down payment for most transactions. To calculate the minimum down payment, simply multiply the sales price by 3.5%. If you have a $100,000 purchase price 100,000*3.5%= $3500. There are two exceptions to this down payment requirement. Some FHA foreclosures are eligible for $100 down payments. Disaster victims under the 203(h) program are not required to put a down payment.
Eligible sources of down payment: the down payment for an FHA loan can come from the borrower's own funds. It can be a gift from a close family member. Or it can come from a down payment assistance program.
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