FHA Loans in Texas: Flexible Financing for Homebuyers
FHA loans can offer flexible qualification guidelines and a low down payment option for eligible homebuyers. Patti Jo Hollon helps buyers throughout Rockwall County and Texas understand FHA financing, compare their options and determine whether an FHA loan fits their homeownership goals.
credit score
580 minimum with 3.50% down payment.
520 minimum with 10.00+% down payment
minimum down payment
3.50% is the minimum down payment.
maximum debt to income ratio
57.00% maximum debt to income ratio (overall debt)
mortgage insurance
0.550% flat mortgage insurance fee
Down Payment Assistance
These are all FHA loans
There are several types of Down Payment Assistance Programs. Each with pros, cons and their own requirements that can be based on credit score and household income limits. Based on your situation, we’ll review which programs you qualify for and meets your goals.
GRANTS
Typically much higher interest rates BUT 100% forgiven after 6 on time mortgage payments and can then refinance out of the higher rate (we’ll go over this together!).
3-Year forgivable 2nd liens
This is a zero payment, zero interest rate 2nd lien (loan). The program sets the rate and the rate increases the more you request for down payment. After your 3rd year anniversary, the lien is 100% forgiven.
financed 2nd lien
There are two different programs where the 2nd lien is financed. One where there is a payment financed for 10 years and another where there is no mortgage paymemt but due when borrower refinances into a lower rate, sells the home or at the end of the 30 year loan.
research program grants
This is a newer program where you can qualify for up to 5.00% of the purchase price. This is forgiven after 60 days when you move into the home. There is no income requirements unlike the other programs. The program is a new energy efficient mortgage by integrating future solar panel installations into a standard mortgage.
