FHA Loans - Buying a Home using a FHA Loan
The FHA loan program was created to help increase homeownership in Texas. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Some highlights of the FHA loan program are:
- Downpayment less than 3.5% of Sales Price
- 100% Financing options available*
- Gift for downpayment and closing costs allowed.
- No reserves are required.
- FHA regulated closing costs.
- Seller can credit up to 6% of sales price towards buyers costs.
- Minimum FICO credit score of 580 with 3.5% down and 500 with more money down..
- FHA will allow a home purchase two years after a Bankruptcy.
- FHA will allow a home purchase three years after a Foreclosure.
- Higher Debt Ratio's than other home loan programs.
- Less than two years on the job is allowed.
- Self-Employed individuals o.k.
These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up home buyers.
You do not have to be a first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one FHA insured loan at any one time.