Beginner’s Guide to Understanding FHA Loans in Texas 2019
There is a total of 7,393,354 households in Texas. Some are single families living in one house, while others are extended families living with their parents. These individuals are happy living harmoniously with the community. And if you want to own your home, you have to work hard for it.
Houses are our empire, and one of our most important investments. It may take years before you own an apartment, especially if you don’t have enough money. Here is when housing loans come in. One of the safest and advanced loans is FHA Loans Arlington. So how does it work? How to get one? This article will help you.
Good Read: Texas Census Date: Households and Families
What is an FHA or Federal Housing Administration Loan?
FHA loan means a mortgage insured by the Federal Housing Administration (FHA). If you are a newbie and a first-time borrower, this loan is for you. Why? Because they allow home buyers to pay only 3.5% for credit scores of 580+. However, to make it more secured, borrowers are required to pay the mortgage insurance premium. It protects the lender if the home buyer or borrower defaults. This type of loan is popular because it is secure and offers low downpayment.
How to get an FHA Loan?
First, you need to be approved by the Federal Housing Authority or FHA to help you get an FHA loan. To do this, you need to submit a loan request so you will receive a custom quote from the housing marketplace. This quote and pricing are with hundreds of lenders. If you don’t have money, you don’t have to worry.
It is free, easy, and you can even do it anonymously. We all know that privacy is crucial, especially if you’re not sure whether you’ll get a loan or not. It is the reason why they allow anonymous loan request without providing any personal information. Once you’re already interested in a lender’s loan quote, you may contact the lender directly. See? It’s easy.
List of FHA Loan Requirements
Now that you already know the process, it’s time to get the paperwork started. Below is the list of FHA Loan requirements. This list is set by the Federal Housing Authority.
- You must be legal to sign a mortgage in your state.
- You must be employed and work for the same employer for at least two years.
- You must have a SS number or Social Security number, which means you are lawful resident in the US.
- As a borrower, you must also have a property appraisal from the Federal Housing Authority appraiser.
- There is a 50% chance you will get approved. But your lender will still be required to present proof on why they believe the mortgage has acceptable risk.
- They need a minimum credit score of 580 for maximum financing, and this also includes a minimum down payment of 3.5%.
These are all fundamental requirements. If you want to know the complete list of FHA Loans Arlington, talk to a professional broker to help you out.
Good Read: Learn FHA Loan