Category: FHA Loans

The 5 Types Of People Who Qualify For FHA Loans in Texas

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

Citation: http://portal.hud.gov/hudportal/HUD?src=/buying/loans

 

The 4 Best Mortgage Assistance Programs Available in Texas

Getting approved for a mortgage loan is one of the first steps in buying a home. But for people with past credit problems, income limitations, or other economic hardships, getting a mortgage through traditional routes can be difficult or impossible. This is where mortgage assistance programs can help.

You may have noticed that I have been promoting our mortgage assistance programs more than ever. There are a number of programs available to help everyday people obtain mortgages – programs like Zero Down VA Loans, Zero Down USDA Loans, programs through the Texas Veterans Housing Assistance Program, bond programs such as SETH, and programs through the Texas Department of Housing and Community Affairs. It’s just a matter of figuring out which ones you qualify for and letting us help you get the process started.

Below are the some of the best mortgage assistance programs available for home buyers in Texas.

VA Loans

Most veterans are eligible for a VA assistance, which provides low cost financing and other programs to help veterans build or purchase a home with little to no down payment. VA loans are offered by private lenders but a portion of the loan is guaranteed by the Veterans Administration. This means the lender can offer better terms on the mortgage note, and veterans who otherwise wouldn’t have had enough cash to purchase a home can now obtain financing.

The types of VA assistance available include:

  • Purchase Loan – for building or purchasing a home. No down payment or private mortgage insurance is required.
  • Interest Rate Reduction Refinance Loan (IRRRL) – to refinance an existing VA home loan.

Eligibility for VA assistance depends on your military service, credit score, income, and possession of a valid Certificate of Eligibility (COE). Please call me at 512-459-2405 to learn more.

FHA Home Loans

The FHA home loan program is administered by the U.S. Department of Housing and Urban Development. This program has more flexible debt to income ratios and lower minimum credit scores. It is a perfect resource for first time home buyers who have very little savings, who have had credit problems in the past, or who want to save the extra cash to fix up the home they are purchasing.

FHA loans are offered by private lenders but are insured by the Federal Housing Administration, enabling the lender to offer a better deal that includes:

Low down payments – as low as 3.5% of the purchase price.
Little to no closing costs with seller paid closing costs or lender paid options

There is also additional assistance for first time home buyers available through SETH. Read on to learn more.

Mortgage Grants – Southeast Texas Housing Bond (SETH)

The SETH Single Family Bond Program offers down payment assistance, closing cost assistance, grants, and fixed-rate mortgage financing for buyers in select Texas counties who have a maximum household income of $88,205 (although this amount varies by location).

SETH Program works as follows to help first-time homebuyers purchase a home:

SETH 5 Star Texas Advantage Program – provides a grant of up to 5% of the cost of the home. Repayment of the grant money is not required. Applicants do not need to be a first time home buyer, and the funds may be used for mortgages with fixed 30 year rates. The program is available everywhere in Texas except for El Paso, Grand Prairie, and McKinney.

MCC Program – Texas Mortgage Credit Certificate Program

This program allows buyers to claim a tax credit of up to $2000 for a portion of their mortgage interest payments. The credit can be claimed every year for the life of the loan and helps reduce overall federal tax liability.

To qualify for this program, buyers must:

  • Qualify for a mortgage loan through a lender
  • Have not owned a home in the past three years
  • Meet certain income requirements
  • Agree to make the home their primary residence

All types of mortgages (including VA, FHA, and conventional loans) are eligible for the program. It can be used for new construction or existing dwellings, including single family homes, townhomes and condominiums.. Buyers utilizing this program must complete a pre-purchase homebuyer education course and pay an issuance fee at closing.

If you think you might qualify for one of these programs, don’t hesitate, call me today!
I have a 5-star google rating in customer satisfaction and have the experience servicing all these types of loans . I would like to help you achieve your dream of homeownership.

Please contact Todd Kurio, Residential Mortgage Loan Originator at 512-459-2405 to get started today!