First Time Homebuyers

Since FHA loans are 100% covered in case of mortgage default, FHA financing offers lower down payment requirements and relatively lenient qualification requirements. Due to these reasons, many first time homebuyers turn to FHA for their first home loan. FHA is a good fit for first time home buyers that are interested in the following features:


1. Lower Down Payment

FHA may be an ideal loan for many first time homebuyers because the cash to close can be much lower than conventional. Down payments are only 3.5% of the purchase price, making FHA a great loan program for borrowers that don't have a 20% down payment. FHA also allows for the seller to pay more on the buyer's behalf. This could result in lower cash due at closing for FHA borrowers.


2. Less Stringent Credit Qualification

Generally the underwriting requirements for derogatory credit are not as strict for FHA as it is for conventional lending. FHA is often the appropriate choice for borrowers that have limited credit due to the fact that they have never established much credit history. FHA also allows for lenders to approve applicants with lower credit scores and minor credit blemishes. Buyers that have had bankruptcies (discharged for at least two years) may also be considered for approval if they meet certain criteria. To find out more about the credit qualifications for FHA please call (512) 956-7342 or send an email to info@texasfha.com.


3. Higher Debt to Income Ratios

One of the main reasons that FHA is chosen as a loan program by home owners is that the program allows for higher debt to income ratios. This means that with FHA, a home owner can owe more credit obligations in relation to their income than with conventional financing. This may be the case for borrowers that have recently started a new career or if a borrower happens to be a self-employed and their income changes from year over year.


Purchase Assistant

Our Purchase Assistant has been designed to help narrow down options based on your individual needs. It's quick, it's easy, and the more questions you answer - the more accurate your results.

General Information

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Step 2: Needs Assessment

Have you already found a property to purchase?

 
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Is this your first time purchasing a home?

 
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Step 3: Borrower Information

Are you the primary borrower?

 
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Is there a co-borrower?

 
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Do you know your credit score?

 
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Has the primary or co-borrower filed for bankruptcy in the last seven years?

 
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Step 4: Get Your Results

 
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The Texas FHA Difference:

  • Get competitive rates
  • Quick 2 minute form
  • No SSN required
  • No credit check conducted
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  • Consultation with no Obligation
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