Contrary to conventional mortgage loans, FHA loans, DFW, TX, are government-backed loans. In other words, the Federal Housing Administration guarantees them. These loans are popular with first-time homebuyers for several reasons. For instance, they require lower minimum credit scores; for another, they accept a minimum down payment compared to conventional loans.
To be eligible for an FHA loan, you must meet the following lending guidelines:
Your FICO score is between 500 and 579 with 10 percent down or a FICO score of 580 or higher with 3.5 percent down.
You have a verifiable employment history for the last two years.
You can provide proof of income, which is verifiable through pay stubs, federal tax returns, and bank statements.
You intend to use the loan for a primary residence.
An FHA-approved entity or person appraises your prospective property and meets HUD property guidelines.
Your front-end debt ratio (monthly mortgage payments) should not exceed 31 percent of your gross monthly income.
Your back-end debt ratio (mortgage, plus all monthly debt payments) should not be more than 43 percent of your gross monthly income. (Note that lenders may allow a ratio of up to 50 percent in some cases.)
If you recently have gone through bankruptcy, you must wait 12 months to two years to apply for FHA loans, DFW, TX, or three years after a foreclosure. Lenders may make exceptions on waiting periods for borrowers with extenuating circumstances.
In addition to the popular FHA loans, the FHA also backed other loan programs by private lenders, including the following:
FHA 203(k) loans – these loans help homebuyers purchase a home and renovate it – all with a single mortgage
Home Equity Conversion Mortgage (HECM) – A HECM allows older homeowners aged 62 and up and with significant equity or those who own their homes outright to withdraw a portion of their home’s equity. A HECM is the most popular type of reverse mortgage insured by the FHA.
FHA Energy Efficient Mortgage (EEM) program – It allows homebuyers to purchase homes that are already energy-efficient, such as EnergyStar-certified properties. Or, you can use it to buy and remodel older homes with energy-efficient upgrades.
Online looking for a reputable mortgage broker who can help you with your application for FHA loans, DFW, TX? A mortgage expert from HomePlus can provide the service you need.