Are you one of the lucky 5 types of people who will qualify for an FHA loan? Keep reading to see if you may qualify for an FHA Loan in Texas.
FHA stands for the “Federal Housing Administration” and is a part of HUD, the Federal Government’s “Housing and Urban Development” department. This branch of government insures loans so lenders can offer better rates on mortgage financing. It also comes with some great options for those who need some extra financial help like a low down payment, lower closing costs and easier credit qualifications.
1. First Time Home Buyers
First Time Home buyers love the FHA loan because it allows them to put down a smaller down payment, as little as 3.5% and the seller can pay your closing costs and prepaid fees. Let’s face it, most young people today are struggling with student loan debt and a sluggish economy. Any opportunity to part with less cash is one to be considered! If you already have a property in mind, you should check with your loan officer to see if your desired property would qualify under the program, but typically the maximum number of units the property can have is 4(fourplex).
2. The “Do It Yourself-er”
Do you like to work on home repairs and remodeling?Think you can handle a fixer-upper? If you want to completely customize a home, then an FHA Loan can help you by rolling the total cost of the remodel or repairs into one loan. You can also refinance the cost of the repairs or remodel into a new FHA loan. This type of loan is called a “203k.”
3. The Senior Citizen
There has been a lot of talk about reverse mortgages lately. The FHA website has a great fact sheet for further reading on requirements here. The basic qualifications are that you must be at least 62 years old, own your home outright or have a very low balance. If this sounds like you, follow the link above to learn more about qualifying and turning your home equity into cash you can use to meet monthly expenses.
4. The Eco-Conscious
Are you worried about wasting energy and would like to make energy improvements?There’s an FHA mortgage for that! Check out the FHA Energy-Efficient Mortgage. This relatively recent (1995) program helps homeowners by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage. For more information go to the energy efficient mortgage description on the HUD website.
5. The Mobile Home Owner
There are two types of loans for those who wish to purchase a mobile home or a factory built house. There is one type of loan for people who already own the land that the home is on and another for mobile homes that are or will be located in a mobile home park. You can read HUD’s most recent newsletter titled: The FACTs: HUD’s ManuFACTured Housing Newsletter here.
I hope this cleared up questions about qualifying for an FHA loan. If you feel like you may be one of the lucky types of people who will qualify for an FHA Loan in Texas. Don’t wait call or email today!
Capstar Lending does not currently offer all of the loan programs described above but please contact Todd.Kurio@capstarlending.com or call 512-459-2405 for more details. NMLS#216616 Residential Mortgage Loan Originator