The Texas Department of Housing and Community Development’s mission is to promote “affordable housing,” so it goes without saying that the requirements for getting a Texas FHA loan are very specific.
Texas FHA Loans
First, you will need a functional credit score. At least B+ or better. If you have a low credit score, you will be required to provide the lender with the credit application via fax.
Once the lender receives your credit application, they will evaluate your ability to repay loan debt based on your income Texas FHA loans. As long as you can prove that you will be able to pay back the loan, the approval for your FHA loan will go through.
Your income and monthly expenses will be compared to the cost of living in your area to determine your eligibility. Eligibility requirements vary from lender to lender, but most require at least an account in good standing with a bank. Your credit score will be taken into consideration.
When you meet the initial loan requirements, your loan will be approved. Then you will be required to submit a promissory note. This document spells out the repayment plan for the loan, including interest rates and monthly payments.
You will also be required to provide proof of your employment, the ages of the people borrowing the funds, and a detailed budget for your planned monthly expenditures.
Most Texas FHA loans are based on the “permanent” loan amount. The maximum loan amount is the maximum amount that can be borrowed at any one time. In order to qualify, you must be at least 62 years old. Homeowners must be current on all their debts and must own their homes. Lenders do not consider borrowers who are disabled, jobless, or have a bankruptcy record.
Another key aspect to qualifying for this type of loan is having steady employment. Your lender will also want to know if you have or are currently planning a major home renovation project that would require a lot of financing. If so, you’ll need to prove that you have the financial means to adequately complete the project.
Many lenders require that borrowers pay closing costs, but these costs are usually minimal. Also, in most instances, the interest rates on an FHA loan are better than the rates offered by banks and other traditional mortgage lenders. If you are approved for a Texas FHA loan, it is very important that you faithfully pay all your payments on time. If you fall behind, the consequences can be very serious.