You Ask,”How Do I Qualify For An Texas FHA Mortgage?” The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved mortgage lenders. FHA insures mortgage loans for nearly every type of property including single family homes, condos, Townhomes, Villas, Modular, manufactured and multi-family homes. Since 1934 FHA has been the largest insurer of residential mortgages in the world.

FHA MORTGAGE LENDERS PROVIDE EASY APPROVALS AND LOW DOWN PAYMENT

First Time Homebuyer and moving up buyers get approved for FHA loans when denied financing through conventional means. FHA mortgage seekers find that the FHA mortgage qualifying is the easiest type of real estate mortgage loan to qualify for even if you are looking for a Bad Credit FHA Mortgage or even a No Credit FHA Mortgage. The FHA loan requirement guidelines for loan qualification are the most flexible of all mortgage loans that require less than 3.5% down payment and the seller can credit you up to 6% for closing cost.

BASIC OVERVIEW OF FHA MORTGAGE LENDERS QUALIFICATIONS

• 3.5% Cash Down payment can be a gift or grant or acceptable FHA down payment assistance program.
• 2 Years Stable Predictable Income In The Same Line Of Work. Bonus Over Time Commission Averaged over the Past 2 years.
• 0 x 30 Day late payments reflected Credit report within the last 24 months. 1 or 2 x 30-day lates acceptable case by case.
• 2 year waiting period for Chapter 7 Bankruptcy 12 Months for a Chapter 13.
• 3 Years After Foreclosure Starting when the Title/Deed transferred out of your Name.
• 30-45% Of your Gross Monthly Income towards housing case by case based on Credit and Debt to Income Ratios.

What Are Texas FHA Mortgage Lenders Looking For?

The Texas FHA Mortgage lenders decide the standards they ultimately apply in making loans.

When deciding whether to make am Texas FHA Mortgage loan, FHA approved lenders evaluate the four Cs:

• Cash- Texas FHA Mortgage Lenders consider your readily available money and savings plus investments, properties, and other assets that you could sell quickly for cash. Having these reserves proves that you can manage your current obligations and have funds, in addition to your income, to pay the mortgage.
• Credit. Lenders check your credit score and history to assess your record of paying bills and other debts on time. (Even if you don’t plan to buy a home now, it’s always a good idea to build and maintain strong credit. Landlords often check it to make sure that you can pay the rent. It’s also important if you want to apply for a mortgage or other credit line in the future, such as a student loan, car loan, or credit card.)
• Capacity to pay back the loan. Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the means to take on a mortgage comfortably.
• Collateral. Lenders take into account the value of the property and other possessions that you’re pledging as security against the loan.

• FHA Debt To Income Ratios- In order to prevent Texas FHA Mortgage applicants from getting into a home they cannot afford, FHA guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

• FHA Credit Issues- Texas FHA Mortgage approvals are not based on a credit score driven model but rather a common sense approach to mortgage lending. 

  An TexasFHA Mortgage applicant’s past payment history IE credit performance that demonstrates good credit history and a solid track record of timely payments will likely be eligible for the mortgage.

• Texas FHA Mortgage Insurance- Texas FHA Mortgage loans require mortgage insurance to protect Texas FHA Mortgage lenders against losses that result from borrowers defaults on Texas FHA Mortgage loans.

• Texas FHA Mortgage Lenders Loan Limits-Texas FHA Mortgage loan limits vary based on a variety of housing types and the state and county in which the property is located.

• Texas FHA Mortgage Document  Loan Checklist- Before you start the loan process, you’ll want to be prepared for the loan application. Have your information organized and ready for your loan officer. Be prepared to pay for property appraisal and a credit report.

• Texas FHA Mortgage Closing Costs- While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.