Fulfill Your Dream Through the Fha Loan Program
FHA Loan Program and Its Benefits
The Federal Housing Administration, which is part of the US Department of Housing and Urban Development, insures FHA mortgage loans. Borrowers who take out FHA loans must pay mortgage insurance, which protects the lender in the event that the borrowers default on their loans.
First Time Home Buyer Loan Programs in Houston are among the most common mortgage loan programs due to the low down payment, less restrictive lending conditions relative to others, and, most significantly, the lowest minimum credit score criteria.
How to Get an Fha Loan With Poor Credit Scores
FHA mortgage loans enable borrowers with bad credit to buy a home. Applicants who have no credit history but can provide twelve months of alternative credit history from three different accounts are also eligible for the FHA. The Federal Housing Administration provides mortgage credit after deciding if alternative credit payment histories demonstrate applicants’ ability and intent to repay loans.
Down Payment for FHA Loan Program
Applicants in Houston that are using an FHA mortgage loan program to buy a home have a variety of options for collecting funds for the down payment. The majority of investors put down their own money for their down payment. Family donations or grants from state or local agencies that provide down payment assistance services are other alternatives.
Home sellers, builders, and lenders may use the Federal Housing Administration (FHA) to pay some of a borrower’s closing costs, such as origination fees, title fees, escrow reserve clauses, and other fees. If borrowers choose to pay part or all of their closing costs, they may request a higher interest rate on their loan.
However, since the FHA is more of an insurance fund than a lender, borrowers must use an FHA-approved mortgage lender. Even on the same loan number, not all FHA-approved lenders offer the same interest rate and costs.
Take professional help before applying for the loan to get in touch with the best FHA lenders in Houston.