Texas FHA Loans: Good Credit Score Is Not Necessary To Apply

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If you are a first-time homebuyer or repeat home buyer looking to make use of the subprime mortgage market conditions currently prevailing in the real estate market but, can’t have perfect credit, then the Texas FHA loans offer the ideal solution.

Texas FHA Loans

However, even though these loans are ideal, the lenders charge high interest rates and monthly fees which makes the loans unprofitable in long term Texas FHA loans. With the federal government offering up to $75000 as a down payment on new properties, it has become all the more difficult for the borrowers to get loans. In such a scenario, it becomes imperative to look out for alternatives that will help you buy your dream home at reasonable interest rates and with affordable monthly payments.

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One of the easiest ways to secure financing to buy a new home is by opting for the Texas FHA Loans which are offered by some of the leading mortgage loan providers. While there are some other alternatives like debt-to-income, debt to income plus cosigner, debt to value, etc., none of them are as simple and convenient as the Texas FHA Loans. Texas FHA Loans require borrowers to qualify based on their income and debts to income ratio.

Debt to income is the ratio of income to total expenses and debt-to-value is the maximum amount you can borrow based on your income. Home loan requirements and guidelines, along with Texas FHA Loans, are available online from various financial institutions.

The basic eligibility requirements for Texas FHA Loans are homeowners with fewer than twenty-five years old, possessing the capability to pay, having their primary place of residence within the state, and not having a co-owner or borrower in default. Another eligibility criterion is having an unblemished credit history. To obtain the mortgage insurance from the texas department of housing and development, you need to fill up an application form. The application can be downloaded from the department’s website or you can personally visit the location to fill-up the form.

FHA is a great option for borrowers with bad credit scores or those who cannot get conventional loans because of their credit score. The mortgage insurance pays the interests on the first thirty-six days after the borrower makes his/her first payment. If late payments remain, the interest rates will increase with the supervision of a supervisor. In addition to providing mortgage insurance, the FHA also offers certain counseling services that can prove to be of great help to borrowers.

Although FHA is similar to the conventional loans program, FHA has several advantages over conventional ones. Unlike the conventional loans program, FHA requires no credit scores and does not check the financial background of the borrowers. FHA even helps borrowers who have CCJs, foreclosure problems, bankruptcy problems, and debt-to-income ratio calculation problems. FHA loans also do not require pre-qualification, which means you can apply right away without waiting for long periods.

Texas FHA loans are better than conventional loans because of many reasons. They provide affordable homeownership opportunities, assist people with low credit scores to own homes, reduce monthly house payments, provide assistance with monthly debt and illness payments, reduce chances for foreclosure, provide protection against sudden illness, provides debt-to-income ratio calculation, and many more. This is why Texas FHA Loan Programs have become very popular among the borrowers and the real estate investors in Texas.