Today’s Houston Mortgage Market is not what it was just one year ago…

Many changes have taken place over the past 12 months which have made it more and more difficult to obtain financing for a home.  The great news is that an FHA loan limits have recently increased and may be the solution many Houston home buyers are looking for.  

In today’s market many Houston home buyers are looking to FHA loans for their financing needs.  FHA loans are federally insured loans that allow buyers who have little or no credit history, coupled with limited funds available for down payment, to obtain a mortgage with a great interest rate and low monthly payments. 

These federally insured loans were originally developed in 1934 by the Federal Housing Administration in order to help first time home buyers purchase a home.  FHA loans are still a very popular choice for first time home buyers.  However many seasoned home owners have found that an FHA loan may be a great option for their next purchase as well.

If down payment, credit history, or monthly payments have kept you from buying a home there may be a solution.  Take a look at the outline below which will help you determine whether or not you may be eligible for a low or no down payment FHA loan with an excellent interest rate.

FHA Eligibility Check List

1. 24 months of continuous employment history.  FHA  borrowers are allowed to have different employers but they are not allowed to have any gaps in their employment that are greater than 30 days unless there is a valid explanation for a significant lapse in employment. 
2. No more than one 30 day late payment with any creditor in the last 12 months.  FHA underwriters do not scrutinize at the borrowers past credit history the same way conventional ones do.  The most recent12 months credit history is the only credit that matters.   Old collection accounts and lower credit scores DO NOT DISQUALIFY BORROWERS.
3. Most FHA first time home buyers must demonstrate timely rental payments for the past 12 months.  (There are several exceptions to this guideline:  well established credit history and low debt ratios are 2)
4. No Down Payment, No Problem. FHA only requires 3% of the purchase price for down payment.  If the borrower does not have the funds available they can accept a gift from several sources.  Many borrowers obtain a gift from a family member but a majority receive a gift from a Non-Profit organization such as Nehemiah. 
5. FHA has recently increased the FHA Loan Limit in Texas from $200,160.00  to $271,050.00.