At FHA Loan Houston.com, we want to help you understand how FHA mortgage loans work.

Many people believe that the FHA (Federal Housing Administration) is the entity that lends the money and they set all the rules and FHA guidelines when determining who is eligible, however that is incorrect.

The FHA does not lend any money - FHA lenders do. While the FHA sets the standards and parameters of what types of loans they are willing to insure, lenders have what is called an "overlay". What this simply means is just because FHA has a guideline doesn't necessarily mean that the investor (bank/lender, etc) is going to go by it.

Because of what happened a few years ago in the mortgage crisis, lenders basically want to cover themselves in case of a default, so they take any extra measures to insure that the borrower is credit-worthy and can set a rule above (i.e. overlay) of what FHA is considering to be an insurable mortgage.

Our role as your local Houston FHA Lender is to make sure that your situation makes sense and your mortgage needs are met. Whether you’re trying to determine if you qualify or if you’re interested in finding out what kind of documentation you’ll need to ultimately get your loan, we can provide you the information you’re looking for. Additionally we’re more than happy to take your phone calls so feel free to contact us.