FHA Loan Dallas, TX

An FHA Loan is a government mortgage insured by the Federal Housing Administration (FHA). FHA Loans offer borrowers relaxed credit requirements and more flexible underwriting guidelines than conventional loans. In addition to purchase loans, refinance programs are available for FHA borrowers, non-FHA borrowers, and homeowners interested in cash-out options. Up to 80% of the home’s current value can be taken out in cash with a refinance.

FHA Loan Benefits

Texas FHA Home Loans: Accessible Homeownership for All

FHA Loan Limits in Dallas, TX

FHA loans stand out as a premier option for new homeowners in Dallas, TX, offering more relaxed down payment and credit requirements. While they’re a natural fit for first-time home buyers, it’s important to remember that FHA home loans are available to any eligible buyer. These loans are particularly appealing to younger buyers with limited funds, requiring only a 3.5% down payment.

Credit Flexibility and Loan Limits

With FHA loans, lower credit scores are not a barrier to buying a home. With as little as 3.5% down, we can accommodate a 600 FICO score. For condominium seekers, the property must be FHA-approved. As of 2024, Texas FHA loans can be used for new home purchases up to $498,257, with higher limits applicable in metropolitan areas like Dallas, Austin, and Houston.

FHA home loans are insured by the Federal Housing Administration, part of HUD. They offer a lifeline to those who don’t meet conventional loan criteria. Though market forces dictate interest rates similarly to conventional loans, the underwriting process marks a distinct difference.

The Advantages of FHA Loans for Dallas Texans

Texas FHA home loans are notably advantageous for those with less liquidity. With competitive market rates and lower down payment requirements compared to many conventional loans, they offer a practical route to homeownership.

FHA Loan Highlights

  • Straightforward Qualifying Criteria
  • Low Down Payment: Only 3.5% Required
  • Acceptable Use of Gift Funds for 100% Down Payment
  • Up to 6% Seller Contribution Toward Closing Costs
  • Flexible Underwriting Standards
  • Accommodating Debt-to-Income Ratios
  • Lower Minimum Credit Score Requirements
  • No Penalty for Prepayment
  • Streamline Refinance Options
  • Eligibility for Manufactured Housing (With Restrictions)
    Current FHA Rate: 8.125% APR, 9.068% (30-Year Term)

Loan Specifics and Borrower Eligibility

In 2024, the FHA loan limit for a single-family home in Texas is $498,257, varying by county. The loan amount depends on the home price relative to the median home value in the county. An FHA appraisal is necessary to ensure the property’s value is commensurate with the borrowed amount.

For borrower qualifications, FHA stipulates a need for stable employment/income, a primary residence intention, no foreclosures within the last three years, and a debt-to-income ratio of 50% or less. A minimum down payment of 3.5% is required, along with funds to cover the upfront mortgage insurance premium and closing costs, which can range from 2-6% of the purchase price.

Texas FHA Loan Requirements: A Snapshot for 2024

  • Stable employment and income verification.
  • Intention for the home to be your primary residence.
  • No foreclosures within the last three years.
  • A debt-to-income ratio of 50% or lower.
  • A minimum down payment of 3.5%.
  • Additional funds for the upfront mortgage insurance premium (UPMIP).
  • Closing cost coverage, which can vary from 2-6% of the purchase price.

Embark on your journey to homeownership with the confidence that HomeTown Lending is here to guide you every step of the way.

Why Choose HomeTown Lending for Your FHA Loan?

As a seasoned FHA lender in Texas, we pride ourselves on our ability to offer insightful guidance and support throughout the mortgage process. Our direct lending status means we can employ common-sense underwriting principles to underwrite your loan swiftly, often within 28 days or less. We focus on finding the best home loan program for you, prioritizing your needs over sales pressure. With competitive rates, low fees, and a dedicated team, HomeTown Lending stands out as your FHA loan partner.

To learn more about FHA loans in Texas or to start the application process, visit our website today. Our FHA mortgage rates in Texas are tailored to support your home purchasing goals.