The main goal of the Federal Housing Administration (FHA) is to move the housing market and protect the lenders if a borrower was to default on the mortgage. The FHA was created part of the National Housing Act and later became part of the Department of Housing and Urban Development (HUD). The FHA has grown the largest insurer of mortgages in Texas. Nortex Mortgage is committed to offer great rates and flexible financing options on FHA loans in Plano, McKinney, Frisco, and the whole state of Texas. Contact Nortex Mortgage today at 972-989-1277 for a free consultation.
FHA Loans Benefits
FHA Loans in Texas can be used to purchase a new home, do renovation projects, reverse mortgages, and even refinancing an existing mortgage. Cash-Out refinance options are available to borrowers in need of capital for debt consolidation or repairs. Streamline refinance loans are available to reduce interest on your current loan.
FHA Loans in Texas offer relaxed credit requirements and lower down payment options to make it easier qualify for than other loans. Buyers could potentially qualify for an FHA loan with a down payment of only 3.5% of purchase price and a credit score of 600. If a buyer does not have adequate savings to cover the down payment, family members can gift the money. Since these loans are easier to qualify for, FHA loans are very popular among first time home buyers in Plano, McKinney, Frisco, and the whole state of Texas.
Texas FHA Loan Requirements
- Down Payment Requirement: A down payment of 3.5% of the purchase price is the minimum allowed. If a buyers credit score does not support this, a higher down payment may be required.
- Income Requirements: Debt to income ratio of 43% or less is generally required. A higher debt to income ratio could be approved in unique situations.
- Credit Score Requirements: Typically, the minimum credit score is 600, although borrowers with a lower one could potentially qualify.
- Property Requirements: All properties purchased through the FHA loan program must meet certain structural integrity and safety requirements.
Collin County Loan Limits
- The Collin County loan limits for a single family property is $362,250. If you live in another county, Nortex Mortgage will do research on your behalf.
Working with a Qualified FHA Lender in Texas
At Nortex Mortgage we are committed to helping all of our clients with all of their FHA loan needs in Plano, Frisco, McKinney, and the whole state of Texas. If you are purchasing your first home, or are looking to refinance your current FHA loan to a lower rate, we can help. Contact Nortex Mortgage today at 972-989-1277 with any questions you have on FHA loans in Texas or how to get pre-qualified!