An FHA loan is backed by Federal Housing Administration mortgage insurance. This type of loan is typically easier to be approved for and helps those with lower incomes be able to be approved for a mortgage so they can purchase a home. It is important for borrowers to understand the Texas FHA loan requirements so they will be properly prepared for the process. With this information, borrowers can learn if they are qualified for these loans so they can pursue their dream of home ownership.
The requirements for an FHA loan include:
The applicant must have at least a credit score of 580 before applying for an FHA loan. It is advised a person carefully checks their credit report and improves their score if it does not meet the minimum requirement before attempting to apply. The higher the score, the less interest will be charged and the greater the likelihood of being approved.
The borrower must be able to provide proof of their income. They must have a regular income coming in, whether through work, government benefits, or pensions. Ideally, one should be with their job at least a year to prove they have a reliable source of income so they will not be turned down.
The borrower must be able to put 3.5% down on the home they are purchasing. This can be from the borrower’s savings account and can even be gifted by a family member so the costs of the down payment can be covered.
The home being purchased by the borrower must be their primary residence and cannot be an extra home or rental property.
The applicant will need to be cleared of the Government’s Credit Alert Interactive Verification Reporting System. Defaulting on a government loan or owing back taxes will cause a person to be denied their FHA loan.
If you need help with FHA loan eligibility, contact an FHA-approved lender right away. They can help you learn if you qualify so you can get started on the loan process. With the help of a loan officer, the process of applying and being approved for an FHA loan will be much easier to go through.